Tech Mahindra Q4 PAT climbs 29% QoQ; declares dividend of Rs 28/ share

The IT major's consolidated net profit jumped 29.51% to Rs 661 crore despite of 1.76% decline in revenue from operations to Rs 12,871.3 crore in Q4 FY24 over Q3 FY24.

On a year on year (YoY) basis, Tech Mahindra's net profit dropped 40.86% while revenue fell 6.17% in Q4 FY24.

EBITDA stood at Rs 1,407.8 crore in the quarter ended 31 March 2024, up 22.8% QoQ and down 30.3% YoY. EBITDA margin was at 10.9% in Q4 FY24 as compared to 8.8% in Q3 FY24 and 14.7% in Q4 FY23.

In terms of dollars (USD), revenue stood at $1,548.2 million in Q4 FY24, registering a de-growth of 1.6% QoQ and 7.2% YoY. In constant currency terms, revenue declined by 0.8% QoQ and down 6.4% YoY. Profit after tax was at $79.7 million, up 29.5% QoQ and down 41.5% YoY. Free cash flow was at $129 million in the March quarter.

During the quarter, EBITDA was at $169.2 million, up 22.9% QoQ and down 31.1% YoY. EBITDA margin came in at 10.9% in Q4 FY24, up 220 bps QoQ.

The IT firm secured net new deals worth $500 million in Q4 FY24 as against $381 million in Q3 FY24 and $592 million reported in Q4 FY23.

Total headcount was at 145,455, registering a decline of 1% QoQ and 4.6% YoY. The last twelve month (LTM) IT attrition rate was constant at 10% in Q4 FY24 as compared to Q3 FY24, while in Q4 FY23 attrition rate was 15%.

On full year basis, the companys consolidated net profit tumbled 51.2% to Rs 2357.8 crore on 2.43% decline in revenue to Rs 51,995.5 crore in FY24 over FY23.

Cash and cash equivalent was at Rs 7,911.5 crore as of 31 March 2024, compared with Rs 7,012.3 crore as of 31 December 2023 and Rs 7,435.1 crore as of 31 March 2023.

Rohit Anand, CFO of Tech Mahindra said, With another quarter of robust cash generation, we have reported improvement in deal wins and operating margins in Q4FY'24, which has enabled consistent dividend distribution. We are confident that our actions will lead to steady earnings growth in the coming years. We will continue to focus on operational excellence and cost savings to deliver superior shareholder returns.

Meanwhile, the companys board has recommended a final dividend of Rs 28 per equity share for FY24. The dividend, if approved, will be paid on or before, 9 August 2024.

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 added 0.34% to end at Rs 1,190.10 on the BSE.

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