Mid-size information technology (IT) firm Tech Mahindra reported a 7.36% dip in its fourth quarter net profit to ₹1,132 crore as cost of services went up and other income came down during the quarter.
The fall in profits were reported on 10.4% growth in revenues during the quarter to ₹8,892.3 crore.
The company's EBITDA during the quarter improved by 16% to ₹1,638.7 crore.
Commenting on the results, C P Gurnani, MD & CEO, Tech Mahindra said, “We had a satisfactory year, characterized by significant margin improvements, a growing digital portfolio and considerable increase in deal wins. While our Enterprise business has performed satisfactorily during the year, we are encouraged by the revival of the Communications business. Our continued investments into our partner ecosystem for building a unique portfolio of 5G offerings will enable us to address the Networks of the Future opportunity.”
For FY19, Tech Mahindra reported 13% rise in net profits to ₹4,297.6 crore on 12.9% growth in revenues to ₹34,742 crore.
Manoj Bhat, CFO, Tech Mahindra said, “It has been a year of overall operational performance improvement on various fronts, leading to a significant expansion in EBITDA margin year on year. We initiated our maiden share buyback program on the back of a healthy cash conversion during the year, with a view to returning enhanced value to our shareholders.”
Tech Mahindra’s board has proposed a dividend of ₹14 per share on the face value of ₹5.
“Tech Mahindra recorded a disappointing performance in its Enterprise business in 4QFY19, even as the key Communication vertical performed impressively. New growth avenues like 5G will be keenly watched given that it can drive substantial new business for the IT major. Attrition rising to 21%, a nearly 8-year high remains a major negative issue,” said Harit Shah, senior analyst, Reliance Securities.
The company’s total headcount as on March 31, 2019 stood at 121,082, up 8,275 annually.
Tech Mahindra shares on BSE closed down marginally at ₹773.45 in a weak Mumbai market on Tuesday.
