Tech Mahindra Q4 net profit doubles to Rs 12.22 billion

Dollar revenue for the quarter grew 10% y-o-y to $1.24 billion and profit of $188 million, up 18% quarter-on-quarter

India's fifth-largest information technology company Tech Mahindra on Friday announced 35.1 per cent growth year-on-year in annual profit for 2017-18 to Rs 38 billion. Its 2017-18 revenue grew 5.6 per cent to Rs 307.73 billion.

For the fourth quarter ended March, the company posted a profit of Rs 12.2 billion, up 108 per cent over the fourth quarter of 2016-17 and 29.6 per cent compared to the previous quarter. Its fourth quarter revenue touched Rs 80.5 billion, which is 7.5 per cent higher than the year ago period and 3.6 per cent higher than the third quarter.

"Continued focus on operational metrics has led to improved performance though the year. Growth in digital areas is encouraging. We remain focused on delivering value, while helping our employees with constant innovation in the digital world," said CP Gurnani, managing director and chief executive officer, Tech Mahindra.

Earnings before interest, tax, depreciation and amortization (Ebitda) for the quarter stood at Rs 14.12 billion at 17.5 per cent Ebitda margin, gaining 120 basis points over the quarter, which was above Street expectations. Annual Ebitda touched Rs 47.1 billion, gaining 12.6 per cent over the previous financial year.

Dollar revenue for the quarter grew 10 per cent y-o-y to $1.24 billion and profit of $188 million, up 18 per cent quarter-on-quarter.

The company announced Manoj Bhat's appointment as a Chief Financial Officer (CFO) with effect from June 1, 2018. Milind Kulkarni, current CFO of the Company will retire on May 31, 2018 on reaching the superannuation age. The company's struggle with its communication segment continued as revenue share from the segment fell to 43.3 per cent in FY18, compared to 47.8 per cent in FY17.