Tech Mahindra net profit up 34% YoY at Rs 1,081 cr, declines sequentially

Revenue for the quarter up 2.5% YoY to Rs 9,730 crore, and 0.9% compared to preceding quarter ended December 31, 2020

Tech Mahindra announ­ced a net profit of Rs 1,081 crore for the fourth qu­a­rter (Q4) ended March 31, 2021, up 34.6 per cent year-on-year (YoY), but down sequentially by 17.4 per cent.
 
Revenue for the quarter was up 2.5 per cent YoY at Rs 9,730 crore, but grew a mere 0.9 per cent compared to the pre­ceding quarter ended Dec­ember 31, 2020. The firm also announced the acquisition of Eventus Solutions, a consulting and technology ser­vices company, headquartered in the US, for $44 million.
 
The acquisition will bolster consulting capabilities in the customer experience and customer management space. Ev­e­ntus Solutions offers end-to-end customer engagement so­l­­utions, such as strategy consulting, cloud-based tools, au­to­­mation services and managed services. For the FY20-21, the company’s revenue stood at Rs 37,855 crore, up 2.7 per cent and net pro­fit grew 9.8 per cent to Rs 4,428 crore. Tech Mahindra said its total contract value for the fourth quarter was at $1 billion, 2x compared to $455 million it signed in Q3 of FY21.
 

“FY22 is going to be a gro­wth year. We expect to have a double-digit growth this year. We are witnessing a str­ong de­mand acceleration and are committed towards delivering the next-level hu­man-cent­er­ed experience of the future,” said C P Gurnani, MD & CEO, Tech Mahindra.
 
The firm reported free cash flow of $965 million in Q4, due to reduced debtor days. This is one of the highest free cash flo­ws ever registered by the firm. “We have witnessed substantial margin im­p­rove­ment and cash flow generation this year. Our focus on delivery transformation will continue, as we increasingly witness a structural shift tow­ards digital to adapt to the new normal. We are positioned uni­quely to gain from this shift, while im­proving our financial and ope­rating metrics, going forward,” said Milind Kulk­arni, CFO, Tech Mahindra.
 
The company announced a dividend of Rs 30 per share.