Results: Tech Mahindra PAT up by 10%; Board proposes a final dividend of Rs 15 per share

Information company Tech Mahindra reported a marginal decline of 1.4 per cent in revenue in the year ended March 31, 2021 in dollar terms. Its revenue stood at USD 5,111.1 million or Rs 37,855.1 crore, the company stated. Meanwhile, in Indian currency terms, the company saw a rise in its revenue from Rs 36,867.7 crore in FY 2020 to Rs 37,855.1 core in FY 2021.

In USD terms, the profit after tax (PAT) of the company stood at USD 597.8 million; up 5.5 per cent YoY (year-on-year). The PAT of the company stood in rupee terms stood at Rs 4,428 crore in FY 2021, an increase of almost 10 per cent, from Rs 4,033 in FY 2020. The profit before tax (PBT) of the company was at Rs 5,953 crore in FY 2021.

The Board has proposed a final dividend of Rs 15 per share (300 per cent) and a special dividend of Rs 15 per share (300 per cent) on the FV of Rs 5 in addition to the special dividend of Rs 15 per share declared earlier. The total dividend declared for FY21 is of Rs 45 per share (900 per cent). The free cash flow of the company was Rs 7,169 crore.

Meanwhile, the company reported 34.6 per cent rise in consolidated net profit to Rs 1,081.4 crore for the March 2020 quarter. Its net profit stood at Rs 803.9 crore in the corresponding period a year ago, Tech Mahindra said in a regulatory filing. The Mumbai-based company saw its consolidated revenue from operations increasing 2.5 per cent to Rs 9,729.9 crore as against Rs 9,490.2 crore in the year-ago quarter, it added.

CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, said, “Our continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter. We are witnessing a strong demand acceleration and are committed towards delivering a next-level human-centered experience of the future, Now. The health and wellness of our associates and community at large, continues to be our prime focus, as we navigate through this pandemic together.”

Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said “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.”