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Tech Mahindra Q4 net profit falls 17.4% QoQ to Rs 1,081.4 crore; revenue up 0.9%; misses estimates

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IT services major Tech Mahindra on Monday reported a 17.4 percent sequential fall in consolidated net profit at Rs 1,081.4 crore for the quarter ended March 2021.

Tech Mahindra Q4 net profit falls 17.4% QoQ to Rs 1,081.4 crore; revenue up 0.9%; misses estimates
IT services major Tech Mahindra on Monday reported a 17.4 per cent sequential fall in consolidated net profit at Rs 1,081.4 crore for the quarter ended March 2021. The company’s net profit in the previous quarter was Rs 1,309.81 crore. Profit missed CNBC-TV18 analysts poll estimates of Rs 1,313 crore.
Consolidated revenue during Q4FY21 grew by 0.9 percent to Rs 9,729.9 crore from Rs 9,647.1 crore in the December quarter. Revenue also missed analysts' estimates of Rs 9,830 crore for the quarter.
In dollar terms, Tech Mahindra's revenue was at $1,329.6 million, registering a sequential growth of 1.6 percent, lower than estimates of 2.7 percent growth. Constant Currency (CC) revenue growth was at 0.7 percent versus CNBC-TV18 Poll of 2 percent.
IT services business revenue registered a 1 percent sequential growth at Rs 8,673 crore, while BPO segment revenue was almost flat at Rs 1,056.9 crore in Q4FY21 against Rs 1,056.6 crore in Q3FY21.
During the quarter, new deal wins were robust at $1.04 billion as against $455 million in the December 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,” said CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra.
On the operational front, EBIT was at Rs 1,553 crore, while EBIT margin was at 15.96 percent.
“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, Chief Financial Officer, Tech Mahindra.
The total headcount during the quarter was at 121,054, down 847, QoQ.
Cash and Cash Equivalent were at $1,780.9 million as of March 31, 2021.
The company's board has proposed a final dividend of Rs 15 per share.
On Monday, shares of Tech Mahindra ended 1.34 percent higher at Rs 963.15 apiece on the BSE.