Tech Mahindra missed street’s estimates as the company’s bottom-line recorded double-digit decline in the fourth quarter of FY23. The company posted a consolidated PAT of ₹1,117.7 crore in Q4FY23, declining by 25.8% YoY and 13.8% QoQ. Revenue saw a mixed performance with YoY growth of 13.2% but flat sequentially. Tech Mahindra has declared a final dividend of ₹32 per share for fiscal year ended March 31, 2023.
The company posted a net profit of ₹1,505.7 crore in Q4FY22 and ₹1,296.6 crore in Q3FY23.
Tech Mahindra’s profitability took a hit owing to higher expenses and cut in clients spending due to challenging macro conditions.
Further, consolidated EBITDA stood at ₹2,021 crore — recording a drop of 5.7% QoQ, and 3.2% YoY
In the top-line front, consolidated revenue from operations stood at ₹13,718.2 crore in Q4FY23, registering a growth of 13.2% from ₹12,116.3 crore in Q4 of previous fiscal but inched lower as against ₹13,734.6 crore in the preceding quarter.
In dollar terms, revenue stood at $1,668 million flat QoQ but up 3.7% YoY. Revenue growth at 0.3% QoQ in constant currency terms.
Between January to March 2023, the company let go of 4,668 employees — taking the total headcount to 152,400 employees by end of the fiscal.
Rohit Anand, Chief Financial Officer, said, “Our strategy of prudence and operational excellence helped us through the uncertainties of FY’23. We continue to return cash to shareholders through a consistent dividend policy.”
For full year FY23, the PAT stood at ₹4,832 crore down by 13.2% YoY, while EBITDA came in at ₹8,029 crore down 0.1% YoY coupled with margins at 15.1% which contracted by 290 bps YoY. Revenue zoomed by 19.4% YoY to ₹53,290 crore.
As of March 31, 2023, Tech Mahindra’s free cash flow stood at ₹4,002 crore.
Tech Mahindra’s board has recommended a final dividend of % 32 per share, taking total dividend for FY23 to ₹50 per share.
Anand added, “We move into the next fiscal, with sharper focus on productivity improvements, cash & value creation for our stakeholders.”
For FY24, Tech Mahindra’s CP Gurnani, Managing Director & Chief Executive Officer, said, “we see the increasing need for businesses to stay agile by leveraging next generation technologies. We are strongly focused on helping our customers stay competitively dominant and relevant in the era of fast evolving market conditions by helping them adapt to leaner and sustainable business models.”