IT major Tech Mahindra on Thursday reported a 26 per cent decline in its consolidated net profit to Rs 1,118 crore. According to the company's exchange filing, for the entire fiscal year of 2022-23, its profit after tax came down to Rs 4,831.5 crore as against Rs 5,566 crore in FY22.
However, the company's revenue for the fourth quarter grew by over 13 per cent to Rs 13,718 crore. It was almost flat when compared to the preceding quarter. For the overall year revenue rose 19.4 per cent to Rs 53,290 crore. EBITA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin for the quarter was 9.6 per cent.
The company's total contract value nearly halved to $592 million as against Rs 1.011 billion in the year-ago period. It was also lower than the $795 million in new deal wins in the preceding December quarter.
Tech Mahindra's board recommended a final dividend of Rs 32 per share.
Many of its competitors, including TCS, Infosys, and Wipro, have released their financial results for the March quarter. They have also mentioned how the macroeconomic volatility in the US, the world's largest market, has affected their business as clients postpone their IT expenditures.
According to its press release, the IT services company's total headcount came in at 152,400, down 4,668 from last quarter. Cash and cash equivalent stood at Rs 7,435 crore as of March 31, 2023.
“We continue to return cash to shareholders through a consistent dividend policy. We move into the next fiscal, with a sharper focus on productivity improvements, cash and value creation for our stakeholders," said Rohit Anand, Chief Financial Officer of Tech Mahindra.