The company’s consolidated revenue also witnessed a fall, a decrease of 6.2 percent YoY to Rs 12,871 crore, slightly below analyst estimates of Rs 12,926 crore
IT player Tech Mahindra reported a huge decline in its net profit, with a 40.9 percent drop year-on-year (YoY), settling at Rs 661 crore for the quarter ending 31 March 2024.
The company noted a 29.5 per cent sequential rise in net profits compared to the previous quarter. However, these figures fell short of the anticipations set by street estimates, which had projected a net profit of Rs 709.47 crore for the fourth quarter.
The company’s consolidated revenue also witnessed a fall, a decrease of 6.2 percent YoY to Rs 12,871 crore, slightly below analyst estimates of Rs 12,926 crore. On a quarter-over-quarter (QoQ) basis, the revenue declined by 1.8 percent.
For the entire fiscal year of 2024, Tech Mahindra’s revenue stood at Rs 51,996 crore, a 2.4 per cent decrease from the previous year, while the net profit significantly dropped by 51.2 per cent to Rs 2,358 crore.
The company has declared a final dividend of Rs 28 per equity share, which may indicate the company’s confidence in its financial stability and future prospects.
In a statement, Mohit Joshi, CEO, Tech Mahindra said, “As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed, differentiates us from competitors.”
Tech Mahindra’s performance in various business segments varied, with the Communications, Media, and Entertainment (CME) sector, which constitutes nearly 40 per cent of its revenue, experiencing a significant 16.5 per cent decline YoY. Other sectors such as BFSI, technology, and retail also saw reductions, though the manufacturing segment reported a growth of 6.2 per cent YoY.
In terms of new business, Tech Mahindra secured a total contract value of USD 1.9 billion for FY24, with USD 500 million achieved in the Q4 alone. This includes a couple of large deals worth over USD 100 million each, indicating a broad base of deal wins despite the revenue setbacks.
Looking ahead, Tech Mahindra anticipated FY25 to be a year of recovery and growth, as stated by Joshi during the Q4 earnings conference.