Tech Mahindra’s Q4FY24 Net Profit (Image Source: iStockphoto)
Tech Mahindra, a prominent IT major, has reported a decline in its net profit for the March quarter of the fiscal year 2023-24, marking a 41 per cent year-on-year drop to Rs 661 crore.
The company’s revenue from operations during the reported quarter stood at Rs 12,871.30 crore, witnessing a decline of 6.2 per cent compared to the same period last year. Despite the company’s efforts, the financial performance for this quarter did not meet expectations, showcasing the persisting challenges in the IT sector.
For the full fiscal year ended March 31, 2024, Tech Mahindra’s profit after tax (PAT) stood at Rs 2,396.80 crore, a significant decrease from Rs 4,857 crore reported in the previous fiscal year. Similarly, the revenue for FY24 amounted to Rs 51,995.50 crore, lower than the Rs 53,290.20 crore reported in FY23. These figures underscore the tough market conditions and competitive pressures faced by the company throughout the year.
In a move to reassure shareholders, Tech Mahindra has recommended a final dividend of Rs 28 per share, in addition to the interim dividend of Rs 12 per equity share paid in November 2023. This brings the total dividend for FY 2023-24 to Rs 40 per equity share, a substantial 800 per cent on the par value of Rs 5 each. As per the company’s filing on the NSE, “Recommended Final Dividend of Rs. 28/- per equity share of the face value of Rs. 5/- each (560%) for the financial year ended 31st March, 2024, subject to the Members’ approval at the forthcoming Annual General Meeting (“AGM”) of the Company. The Final Dividend, if approved, will be paid on or before, 9th August 2024. This dividend is in addition to Interim Dividend of Rs. 12/- per equity share paid by the Company in November, 2023.”
Furthermore, the company has made significant changes to its board composition, approving the appointment of Mr. Tarun Bajaj and Ms. Neelam Dhawan as Additional Directors (Non-Executive). They will join the board effective from May 1, 2024, and will subsequently serve as Independent Directors, subject to shareholder approval at the upcoming Annual General Meeting. These strategic appointments aim to enhance the board’s expertise and governance practices, ensuring sustainable growth and value creation for Tech Mahindra and its stakeholders.
On Thursday, the shares of Tech Mahindra closed at Rs 1,190.75, 0.43 per cent up from the previous day’s closing. The 52 week high and low of the share is Rs 1,416.30 and Rs 981.05 respectively.
