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Tech M Q4 net falls 7% to ₹1,132 cr

Our Bureau

IT services firm Tech Mahindra on Tuesday reported a 7.3 per cent fall in net profit at ₹1,132 crore for the quarter ended March 31 compared with ₹1,222 crore last year as the currency fluctuation and deferrals in enterprise projects impacted the profit.

The revenue rose to ₹8,892.3 crore in the fourth quarter from ₹8,054.50 crore in the corresponding period of the previous year.

In dollar terms, revenues grew 1.9 per cent to $1.27 billion, while profit after tax was down 13.7 per cent .

Earnings before interest and taxes (EBIT) was down 4.9 per cent at ₹1,368.3 crore against ₹1,439 crore in the comparable period, while margin was down at 15.4 per cent against 16.1 per cent (QoQ).

CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, said, “We had a satisfactory year, characterised by significant margin improvements, a growing digital portfolio and a 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.”

On a full year basis, revenues were up 12.9 per cent to ₹34,742 crore as compared to FY18. Profit after tax was up 13.1 per cent year-on-year for FY 19.

Defence deal

Tech Mahindra also announced a ₹300 crore defence order it got from the the Indian Navy. As part of the Armed Forces Secure Access Card (AFSAC) Project, Tech Mahindra will implement RFID (Radio Frequency Identification) based Access Control System across naval bases and ships.

Manoj Bhat, Chief Financial Officer, Tech Mahindra, said, “We saw some volatility in our enterprise business in the quarter and de-grew by 2.2 per cent QoQ. However, we expect a recovery path in Q1 and Q2. Our communications business grew 4.5 per cent QoQ.”

Tech Mahindra’s EBITDA margins were down to 18.4 per cent for the quarter. The board of directors recommended a dividend of ₹14 per share on the par value of ₹5 (280 per cent) for the financial year ended March 3 l, 2019, subject to approval by the members.

The Board of Directors proposed the appointment of Mukti Khaire as independent director. He is to hold office for a term of five consecutive years commencing from August 1, 2019. It also proposed re-appointment of M Damodaran for a period up to March 31, 2022; TN Manoharan and M Rajyalakshmi Rao as independent directors, are to hold office for a second term of five consecutive years commencing from August 1, 2019.

Source: The Hindu