IT services firm Tech Mahindra has posted a 12.12% rise in consolidated net profit at Rs 1,545.3 crore for the fourth quarter ended March 31, buoyant on deal wins and growth across verticals. In comparison, the firm had posted a net profit of Rs 1,378.2 crore for the sequential quarter ended December 31, 2021.
Tech Mahindra’s consolidated net profit for the fourth quarter, a year-ago, stood at Rs 1,044.3 crore.
The fourth quarter net profit attributable to the owners of the company stood at Rs 1,505.7 crore, higher than the consensus estimate of Bloomberg analysts expecting a net profit of Rs 1,419 crore.
During the quarter under review, Tech Mahindra’s consolidated revenue from operations rose to Rs 12,116.3 crore from Rs 11,450.8 crore posted in the December quarter and Rs 9,729.9 in the year-ago quarter.
“Our improved growth performance reflects the power of human-centred experiences, a strong focus on innovation and our ability to create a 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 seven years,” Tech Mahindra Managing Director and Chief Executive Officer CP Gurnani said.
For the financial year ended March 31, Tech Mahindra posted a net profit of Rs 5,630.1 crore (Rs 4,353 crore in year-ago period) on revenue of Rs 44,646 crore (Rs 37,855.1 crore). The board has proposed a final dividend of Rs 30 per share, in addition to an interim dividend of Rs 15. The total dividend for FY22 is Rs 45 per share.
Tech Mahindra appointed Rohit Anand, at present its global head, business finance, as chief financial officer, effective June 1. He will take over from Milind Kulkarni, who is retiring after two decades of service with the firm.
The company’s total headcount rose to 4.2% on a quarter-on-quarter basis to 1,51,173, while it gave an average salary hike of about 8-10% for the year.
“We got another quarter of $1-billion deal wins. We won a deal in 5G, which was our biggest deals in 5G in Europe, and similarly on enterprise we had multiple wins across the segment, be it on the retail side, on transforming and healthcare,” Rohit Anand, senior vice president (Finance) at Tech Mahindra said.
“From a strategy perspective on M&A, it’s all about fulfilling whitespaces in our capability stack. Last 18 months, we have been plugging a lot of gaps in our offering portfolio with a number of acquisitions. As we go into FY23, we will be very focused on integrating those acquisitions and driving synergy. We will be selective when it comes to new acquisitions,” Vivek Agarwal, President (Banking, Financial Services and Insurance, Healthcare and Life Sciences and Corporate Development) said.