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Reflect the ongoing weak demand for IT services, Tech Mahindra reported a 41 per cent decline in its consolidated net profit to ₹661 crore for the fourth quarter ended March 2024 compared to a net profit of ₹1,117.7 crore in the same period last year. Revenue dropped by 6.2 per cent to ₹12,871 crore. For the fiscal year 2024, consolidated PAT was at ₹2,358 crores, down 51.2 per cent compared to the previous fiscal year.
Total headcount at 145,455 down 795 quarter-on-quarter.
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “FY’24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption.”
Rohit Anand, Tech Mahindra’s Chief Financial Officer, said, “With another quarter of robust cash generation, we have reported improvement in deal wins and operating margins in Q4FY’24, which has enabled consistent dividend distribution. We are confident that our actions will lead to steady earnings growth in the coming years. We will continue to focus on operational excellence and cost savings to deliver superior shareholder returns.”
Analysts said the reduction in client spending has dented the company’s performance D. K. Mudaraddi, Research Analyst, StoxBox said “Tech Mahindra’s Q4FY24 results reflect the ongoing weak demand environment, leading companies to focus on improving margins through cost optimization. However, the inability to decrease subcontracting expenses and lower utilization makes us wary of the company’s approach towards efficiently managing resources.”
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