Tech Mahindra Q4 Results: Cons PAT Declines 41% YoY To Rs 661 Crore; Exits FY24 In Red

Tech Mahindra has posted yet another weak quarter, as its consolidated profit declined by 40.9% YoY to Rs 661 crore during the period ending March 31, 2024. However, sequentially, Tech Mahindra's PAT surged by 29.5%. The top line front also declined, while margins expanded. Tech Mahindra also announced a dividend of Rs 28 per share as well.

In the rupee terms, Tech Mahindra's revenue stood at Rs 12,871 crore in Q4FY24, declining by 1.8% QoQ and 6.2% YoY. However, the operating profit and bottom-line front witnessed a mixed trend. EBITDA was at Rs 1,408 crore, up by 22.8% QoQ but down by 30.3% YoY.

Due to a surge in operating profit on a quarter-on-quarter basis, Tech Mahindra's Q4 PAT jumped 29.5% to Rs 661 crore but tumbled by 40.9% YoY. The earnings per share is at Rs 7.45 by the end of the quarter.

In dollar terms, Tech Mahindra's revenue dipped by 1.6% QoQ and 7.2% YoY to $1,548 million in the quarter under review. Its constant currency revenue plunged by 0.8% QoQ and 6.4% YoY. Profit after tax (PAT) was at $79 million; up 29.5% QoQ, down 41.5% YoY. EBITOA at $169 million; up 22.9% QoQ, down 31.1% YoY; Margin at 10.9%, up 220 bps QoQ.

Rohit Anand, Chief Financial Officer, 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."

For the full year, Tech Mahindra revenue was at rs 51,996 crore, down by 2.4% YoY, EBITDA stood at Rs 4,965 crore which was declared by 38.2% YoY and consolidated PAT at Rs 2,358 crore, lower by 51.2%.

For the financial year 2024-24, Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, "As we step into FY'25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed differentiates us from competitors. FY'24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption."

On BSE, Tech Mahindra's share price ended at Rs 1190.10 apiece, marginally up with a market cap of Rs 1,16,244.03 crore as of April 25.