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Tech Mahindra Q2 net profit rises 9.5% QoQ to Rs 1,065 crore; declares special dividend

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Tech Mahindra Q2 net profit rises 9.5% QoQ to Rs 1,065 crore; declares special dividend

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Tech Mahindra reported a 9.5 percent rise in net profit for the quarter ended September 2020 at Rs 1,064.6 crore as against Rs 972.3 crore in the previous quarter.

Tech Mahindra Q2 net profit rises 9.5% QoQ to Rs 1,065 crore; declares special dividend
Tech Mahindra reported a 9.5 percent rise in net profit for the quarter ended September 2020 at Rs 1,064.6 crore as against Rs 972.3 crore in the previous quarter.
Revenue in Q2FY21 increased 2.9 percent to Rs 9,371.8 crore from Rs 9,106 crore. Revenue in dollar terms was at $1,265.4 million, up 4.8 percent, QoQ. The company reported revenue growth of 2.9 percent QoQ in constant currency terms.
EBIT rose 45.1 percent to Rs 1,331.3 crore from Rs 917.3 crore while EBIT margin expanded by 410 bps to 14.2 percent from 10.1 percent, QoQ.
Strong execution on both revenue growth and operational metrics has helped to improve our performance on all fronts. Our cash conversion continues to be robust and we remain committed towards creating value for our shareholders through effective capital return," said Manoj Bhat, Chief Financial Officer, Tech Mahindra.
Tech Mahindra's Q2 earnings beat CNBC-TV18 analysts' poll estimates on all fronts.
The company's board has proposed a special dividend of Rs 15 per share.
The total headcount of the company was at 124,258, up 842, QoQ while active clients stood at 988 in Q2FY21, up by 7 QoQ.
The company has cash and cash equivalent at $1,564 million as of September 2020.
"Our Repair, Rally and Rise strategy has helped the company to emerge stronger, as we journey towards a post-Covid world. We are witnessing demand revival across multiple segments, as customers have accelerated their pace of digital transformation," said CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra.
On October 22, Tech Mahindra said its subsidiary Tech Mahindra (Americas) Inc has agreed to acquire 6.03 percent equity shares in Texas-headquartered VitalTech Holdings Inc, which is in the business of cloud-based telehealth and remote patient monitoring platform development and services.
On Friday, shares of Tech Mahindra ended 1.19 percent higher at Rs 848.10 on the BSE.
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