240% Dividend Payout: Tech Mahindra Declares Rs 12/Share Interim Dividend Despite Weak Q2 Earnings

Tech Mahindra has maintained its track record of paying hefty dividends to its shareholders, and the tech player continued on this trend even in September 2023 quarterly earnings despite recording a decline in net profits. The company has announced a dividend payout of Rs 12 per share and fixed the record and payment dates for the same.

As per the regulatory filing, Tech Mahindra declared an interim dividend of Rs 12/- per equity share of Rs 5/- each i.e. 240% of the face value.

It said, fixed Thursday, November 2, 2023, as the record date for determining the members entitled to receive the Interim dividend.

Further, Tech Mahindra said that " Interim dividend shall be paid on Tuesday, 21st November 2023 to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of Depositories as beneficial owners of the shares as of Thursday, 02nd November, 2023."

In the previous fiscal (FY23), the company paid a total dividend of 1000% amounting to Rs 50 per share.

Since March 2007, Tech Mahindra has declared 26 dividends for its shareholders, as per the Trendlyne data. In the last twelve months, a total of Rs 50 dividends per share were declared. Not just that, Tech Mahindra has also carried bonus issues and stock splits but those were years ago in 2015.

During Q2FY24, Tech Mahindra missed Street's estimates by posting a consolidated net profit of Rs 493.9 crore, declining by 28.7% QoQ and 61.57% YoY. Consolidated revenue from operations also declined by 2.2% QoQ and 2% YoY to Rs 12,864 crore in the quarter.

In dollar terms, revenue declined by 2.8% sequentially and 5.1% YoY to $1,555 million. PAT plummeted by 29.3% QoQ, and 62.5% YoY to $59 million. EBITDA stood at $129 million, registering a drop of 20.5% QoQ and 47.3% YoY, while Margins were at 8.3%, down 180 bps QoQ.

Tech Mahindra offers innovative and customer-centric digital experiences, enabling enterprises, associates, and society to Rise for a more equal world, future readiness, and value creation. It is a $6.5+ billion organization with 148,000+ professionals across 90 countries helping 1250+ global customers, including Fortune 500 companies.