Tech Mahindra’s Net Profit Plunges More Than 30%, Missing Estimates
Consolidated net profit slumped to Rs 590 from versus estimate of Rs 770 crore.
Information technology services and solutions provider Tech Mahindra Ltd.’s net profit declined 30.2 percent sequentially in the fourth quarter, widely missing street estimates.
Consolidated net profit for the January-March quarter slumped to Rs 590 crore from Rs 845 crore in the previous quarter, according to the company’s stock exchange filing. The Bloomberg consensus estimate stood at Rs 770 crore.
Revenue fell marginally to Rs 7,495 crore from Rs 7,557 crore in the last quarter, again missing the consensus estimate of analysts tracked by Bloomberg. Revenue in U.S. dollar terms rose 1.4 percent to $1,131.2 million sequentially.
Earnings before interest and tax fell more than 20 percent to Rs 821 quarter-on-quarter while EBIT margins contracted 300 basis points.
Other Highlights
- The company acquired 8.4 percent stake in U.S.-based healthcare IT services and consulting firm The HCI Group.
- The board has recommended a final dividend of Rs 9 per equity share.