Tech Mahindra net jumps 34% to ~1,081 cr

Mahindra & Mahindra (M&M) group’s IT services arm Tech Mahindra announced a net profit of ~1,081 crore for the Q4 ended March 31, 2021, up 34.6 per cent YOY, but down sequentially by 17.4 per cent. Revenue for the quarter was up 2.5 per cent YOY at ~9,730 crore, but grew a mere 0.9 per cent compared to the preceding quarter ended December 31, 2020.

Tech Mahindra announced a net profit of ~1,081 crore for the fourth quarter (Q4) ended March 31, 2021, up 34.6 per cent year-on-year (YOY), but down sequentially by 17.4 per cent.

Revenue for the quarter was up 2.5 per cent YOY at ~9,730 crore, but grew a mere 0.9 per cent compared to the preceding quarter ended December 31, 2020. The firm also announced the acquisition of Eventus Solutions, a consulting and technology services company, headquartered in the US, for $44 million.

The acquisition will bolster consulting capabilities in the customer experience and customer management space. Eventus Solutions offers end-toend customer engagement solutions, such as strategy consulting, cloud-based tools, automation services and managed services. For the FY20-21, the company’s revenue stood at ~37,855 crore, up 2.7 per cent and net profit grew 9.8 per cent to ~4,428 crore. Tech Mahindra said its total contract value for the fourth quarter was at $1 billion, 2x compared to $455 million it signed in Q3 of FY21.

“FY22 is going to be a growth year. We expect to have a double-digit growth this year. We are witnessing a strong demand acceleration and are committed towards delivering the next-level human-centered experience of the future,” said C P Gurnani, MD & CEO, Tech Mahindra.

The firm reported free cash flow of $965 million in Q4, due to reduced debtor days. This is one of the highest free cash flows ever registered by the firm. “We have witnessed substantial margin improvement and cash flow generation this year. Our focus on delivery transformation will continue, as we increasingly witness a structural shift towards digital to adapt to the new normal. We are positioned uniquely to gain from this shift, while improving our financial and operating metrics, going forward,” said Milind Kulkarni, CFO, Tech Mahindra.

The company announced a dividend of ~30 per share.