Tech Mahindra’s Final Dividend (Image Source: iStockphoto)
Tech Mahindra, the renowned Indian multinational technology company, has weathered a financial storm in Q4 FY24, facing a palpable downturn in net profits and operational revenues. Under the helm of newly appointed CEO Mohit Joshi, the firm navigated through a challenging quarter marked by a 41% plunge in net profits and a 6% contraction in revenue from operations compared to the corresponding period last year.
The company posted a year-on-year decline in net profit, plummeting to Rs 661 crore. This stark contrast from the Rs 1,117.70 crore reported in the same quarter of 2023 highlights the challenges faced by the company in navigating the evolving market dynamics.
Despite these setbacks, Tech Mahindra has laid out an optimistic growth trajectory for the latter half of FY25. The forecast emerges even as the company grapples with muted revenue growth and anticipates a sequential rise in profit numbers, thanks largely to a low base in the preceding quarter.
The tech giant has been battling sector-specific headwinds, notably within its communications, media, and entertainment (CME) vertical. This segment, traditionally a stronghold for the company, has experienced weakness, contributing to the overall growth drag.
The IT company Tech Mahindra has also announced a final dividend of Rs 28 per equity share. 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.”
CEO Mohit Joshi’s outlook encapsulates a blend of realism and optimism. “While we acknowledge the short-term challenges, our strategic initiatives are aligned towards leveraging emerging technologies and expanding our global footprint. We are poised for a robust recovery and growth in the coming quarters,” stated Joshi.
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.
