IT services firm Tech Mahindra posted a consolidated net profit of 12.15% to Rs 1,545.3 crore for the fourth quarter ended March 31, due to contract wins and vertical growth. In comparison, the firm posted a net profit of Rs 1,378.2 crore for the consecutive quarter ended December 31, 2021.
Tech Mahindra had a consolidated net profit of Rs 1,044.3 crore in the fourth quarter of a year ago.
The company’s fourth-quarter net profit stood at Rs 1,505.7 crore, higher than the consensus estimate of Rs 1,419 crore, according to Bloomberg analysts.
In the quarter under review, consolidated revenue from Tech Mahindra’s operations increased to Rs 12,116.3 crore from Rs 11,450.8 crore posted in the December quarter and from Rs 9,729.9 crore in the year-ago quarter.
“Our enhanced growth performance reflects the power of human-centered experience, a strong focus on innovation and our ability to build a strong customer and partner ecosystem. Tech Mahindra’s commitment to sustainable digital transformation and investment in new-age technology stacks have resulted in the highest increase in wins over the last seven years, ”said CP Gurnani, Managing Director and CEO of Tech Mahindra.
For the financial year ended March 31, Tech Mahindra posted a net profit of Rs 5,630.1 crore (Rs 4,353 crore in the 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 the interim dividend of Rs 15. The total dividend of FY22 is Rs 45 per share.
Tech Mahindra has appointed Rohit Anand as its Global Head, Business Finance, Chief Financial Officer, effective June 1. He will be taking over from Milind Kulkarni, who is retiring after two decades with the firm.
The company’s total headcount rose 4.2% on a quarterly basis to 1,51,173, up from an average salary increase of about 8-10% for the year.
“We’ve got another quarter of the $ 1-billion deal win. We won a deal on 5G, which was our biggest deal in 5G in Europe, and similarly in the enterprise we have won multiple wins across the segment, be it retail, transformation and healthcare, “said Rohit Anand, Senior Vice President (Finance). Tech Mahindra said.
“From M & A’s strategic perspective, it’s about our ability to fill the white space on the stack. Over the past 18 months, we’ve been filling many gaps in our offer portfolio with numerous acquisitions. When we get to FY23, we will be very focused on consolidating those acquisitions and driving synergy. We will be selective in the new acquisition, “said Vivek Agarwal, President (Banking, Financial Services and Insurance, Healthcare and Life Sciences and Corporate Development).