Tech Mahindra Q4 PAT rises 10% QoQ to Rs 1,506 cr

The IT major's consolidated net profit rose 10% to Rs 1,505.70 crore and net sales rose 5.8% to Rs 12,116.30 crore in Q4 FY22 over Q3 FY22.

On a Consolidated basis, profit before tax (PBT) stood at Rs 1,873.30 crore in the fourth quarter, down by 0.7% from Rs 1886.40 crore in Q3 FY22. The Q4 result was declared after trading hours on Friday, 13 May 2022.

EBITDA stood at Rs 2,088.4 crore during the quarter, rising 1.4% Q-o-Q (quarter-on-quarter) from Rs 2,060 crore in Q3 FY22 and up 7.2% Y-o-Y (year-on-year) from Rs 1,948.1 crore in Q4 FY21. EBITDA margin improved to 17.2% in Q4 FY22 from 20% in Q4 FY21 while it registered a margin of 18% in Q3 FY22.

In terms of dollars (USD), revenue was at $1,608.4 million in Q4 FY22; growing 4.9% QoQ and 21% YoY. Revenue growth stood at 5.4% QoQ at constant currency terms. EBITDA was at $275.7 million; slipping 0.3% Q-o-Q in Q3 FY22 and up 3.6% Y-o-Y from Q4 FY21. Margins stood at 17.2%.Profit after tax (PAT) was at $198.5 million; rising 8% Q-o-Q and 24.9% Y-o-Y. Free cash flow stood at $111 million with a conversion to PAT at 56%.

Total headcount at Tech Mahindra was 151,173 in Q4 FY22 as against 145,067 in Q3 FY22 and 121,054 in Q4 FY22. The firm secured total net new deals worth $1,011 million in Q4 FY22 as compared to $704 million in Q3 FY22 and $1,043 million in Q4 FY21. The IT attrition rate stood at 24% in Q4 FY22 and it also remain stagnante in Q3 FY22 and 13% in Q4 FY21. Cash and cash equivalent stood at Rs 8,545.6 crore in Q4 FY22 as against Rs 10,003.8 crore in Q3 FY22 and Rs 13,019.9 crore in Q4 FY21.

The IT firm's consolidated net profit surged to 39.2% to Rs 1,505.70 crore on 24.5% increase in net sales to Rs 12,116.30 crore in Q4 FY22 over Q4 FY21. On full year basis, the company reported a 25.7% increase in net profit to Rs 5,566.10 crore on a 17.9% rise in net sales to Rs 44,646 crore in FY22 over FY21.

CP Gurnani, managing director & chief executive officer of Tech Mahindra, said, "Our improved growth performance reflects the power of Human-Centered experiences, a strong focus on innovation and our ability to create ao strong customer and partner ecosystem. Tech Mahindra's commitment towards sustainable digital transformation and investment in new-age technology stacks has resulted in one of the highest growth with large deal wins over the last 7 years."

Milind Kulkarni, chief financial officer of Tech Mahindra, said, "Our structural profitability continues to be robust, and we look forward to continuing our journey with commitment to resilient capital return and operational efficiency backed by a comprehensive digital portfolio."

Meanwhile, the company's board recommended a final dividend of Rs 15 per share and a special dividend of Rs 15 per share on par value of Rs 5 (600%) for the financial year ended a31 March 2022. The final dividend, if approved, will be paid by 9 August 2022.

Furthermore, the company has announced retirement of Milind Kulkarni as chief financial officer on 31 May 2022. The board has approved appointment of Rohit Anand as chief financial officer of the company with effect from 1 June 2022.

Tech Mahindra is focused on leveraging next-generation technologies including 5G, Blockchain, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers.

Shares of Tech Mahindra were up 0.72% at Rs 1210.95 on the BSE.

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