Tech Mahindra Q4 Results: Net Profit Declines 17%, Misses Estimates
Employees walk past singage Tech Mahindra Ltd. outside one of the company's office buildings in the Electronic City area of Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

Tech Mahindra Q4 Results: Net Profit Declines 17%, Misses Estimates

Tech Mahindra Ltd.’s profit fell in the quarter ended March, missing estimates, despite deal wins.

The information technology company saw its net profit drop 17% over the preceding quarter to Rs 1,081.4 crore in the January-March period, according to its exchange filing. That compares with the Rs 1,307.4-crore consensus estimate of analysts tracked by Bloomberg.

Its revenue rose 1% sequentially to Rs 9,729.9 crore, against the Rs 9,831.8-crore forecast.

Other Highlights (quarter-on-quarter)

  • Revenue in dollar terms rose 1.6% to $1,329.6 million.

  • Constant-currency revenue growth stood at 0.7%.

  • Operating profit rose 1% to Rs 1,553 crore.

  • EBIT margin expanded to 16% from 15.9%.

Continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter, CP Gurnani, managing director and chief executive officer at Tech Mahindra, said in the filing. “We are witnessing a strong demand acceleration.”

The company has recommended a final dividend of Rs 30 apiece and a special dividend of Rs 15 apiece for FY21.

Shares of Tech Mahindra closed 1.26% higher before the results were announced. The stock has declined 1.61% so far this year compared with NSE IT index’s 5.01% gain.

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