Tech Mahindra net down 33% in Q4

Mumbai, May 26 :  Software major Tech Mahindra on Friday reported Rs 590 crore consolidated net profit for the fourth quarter of 2016-17, registering 33 per cent decline from Rs 876 crore in the same period last year.

In a regulatory filing on the BSE, the city-based IT firm said consolidated revenue for the quarter under review grew 9.9 per cent to Rs 7,733 crore from Rs 7,039 crore in the same period year ago.

Sequentially, net profit in Q4 declined 30 per cent from Rs 845 crore in Q3 and revenue dipped 2.6 per cent from Rs 7,713 crore in Q3.

For 2016-17, consolidated net profit declined 5.8 per cent to Rs 2,851 crore from Rs 3,027 crore in 2015-16, while total revenue grew 11 per cent to Rs 29,918 crore from Rs 26,934 crore.

Earnings before income tax, depreciation and amortisation (Ebitda) for Q4 also declined 22 per cent over last year and 24 per cent over last quarter to Rs 899 crore though operating margin grew 12 per cent.

Ebitda dipped 2 per cent to Rs 4,184 crore, while margin rose 14.4 per cent.

The company's Board of Directors recommended a whopping 180 per cent dividend or Rs 9 per share of Rs 5 face value for the fiscal.

"Information Technology the world over is going through a major shift with demand patterns changing constantly. Most businesses are battling the geopolitical uncertainties. As a digital transformation company, we see these as huge opportunities in the future. Our clients are approaching us with more problems to solve than ever before, which is a happy problem for us to deal with," said Tech Mahinda Vice-Chairman Vineet Nayyar in a statement.

The company's active client increased by 36 to 843 in the fiscal from 807 last year.

"The industry is going through a paradigm shift amid changing demand pattern from the clients, technological changes and requirement for skill enhancement. We have responded to those changes proactively by reimagining the business, imbibing a culture of innovation, encouraging reskilling and retraining of our workforce," said CEO C.P. Gurnani.

The company's cash reserves increased Rs 183 crore to Rs 5,383 crore over last year.

"We believe our ability to serve the customers across 'Run', 'Change', and 'Grow' embracing DAVID (Digitalisation, Automation, Verticalisation, Innovation and Disruption) in every conversation, with the objective of providing the right kind of experiences will continue to make us relevant for our clients," added Gurnani.

Total headcount for the year under review stood at 117,693.

The company's scrip gained marginally ay Rs.2.60 per share of Rs 5 face value to Rs 429.35 on the BSE at the end of Friday trading from Thursday's closing price of Rs 426.75 after opening at Rs 430 and trading at a high of Rs 434 and a low of Rs 420.60 during the intra-trading sessions.