Tech Mahindra reports net profit of Rs 1,505.7 crore in March quarter, beats estimates

Tech Mahindra reports net profit of Rs 1,505.7 crore in March quarter, beats estimates
IT company Tech Mahindra on Friday reported a 39.2 percent year-on-year (YoY) rise in consolidated net profit at Rs 1,505.7 crore for the fourth quarter ended March 31, 2022.
In the corresponding quarter last year, the company posted a net profit of Rs 1,081 crore. CNBC-TV18 Polls had predicted a profit of Rs 1,411 crore for the quarter under review.
Revenue from operations stood at Rs 12,116.3 crore during the period under review, up 24.5 percent against Rs 9,730 crore in the corresponding period of the preceding fiscal.
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For the fourth quarter, the company posted a consolidated PAT of Rs 1,506 crore, up 10.0 percent QoQ and up 39.2 percent YoY. For the entire financial year 2021-22, the company reported a 25.7 percent rise in consolidated PAT at Rs 5,566 crore.
At the operating level, EBITDA jumped 5.5 percent to Rs 1,604.2 crore in Q4 FY22 over Rs 1,697.9 crore in Q3 FY22. EBITDA margin stood at 13.2 percent in Q4 FY22 as compared to 14.8 percent in Q3 FY22. EBITDA is earnings before interest, tax, depreciation and amortization.
The total headcount was 151,173, up 4.2 percent QoQ.
CP Gurnani, managing director and chief executive officer, Tech Mahindra, said, "Our improved growth performance reflects the power of Human-Centered experiences, a strong focus on innovation and our ability to create ao strong customer and partner ecosystem.
Tech Mahindra's commitment towards sustainable digital transformation and investment in new-age technology stacks has resulted in one of the highest growth with large deal wins over the last 7 years."
The company closed the quarter with a total contract value of $1 billion and the fiscal with $3 billion in the new deals. Wins during the quarter included a 5G operator in Europe and others in areas like retail and healthcare, company officials said.
Chief financial officer-designate Rohit Anand said the company hired 10,000 freshers in FY22 and will continue to hire with a mix of fresher and lateral workforce.
Tech Mahindra's chief financial officer Milind Kulkarni said the operating profit margin came at 17.2 percent as against 20 percent in the year-ago period, and 18 percent in the quarter-ago period. This was majorly impacted by lower utilisation levels and also supply side issues like additional pay hikes and retention money to be paid to staff, he said.
The profit line got benefited through a decline in the tax rate to over 17 percent as against 27 percent, Kulkarni said. The tax expense stood at Rs 136 crore in the reporting quarter against Rs 511 crore in the year-ago period. The company has committed $900 million for acquisitions in FY22, and will be focusing on integrating the companies taken over in the last 18 months in FY23, Agarwal said.
Tech Mahindra has appointed CP Gurnani as managing director and chief executive officer of the company for another term from August 10, 2022, up to December 19, 2023.
Also, consequent to the retirement of Milind Kulkarni as a chief financial officer on May 31, 2022, and based on the recommendations of the Nomination and Remuneration Committee & the Audit Committee, the Board of Directors has approved the appointment of Rohit Anand with effect from June 1, 2022.
The results came after the close of the market hours. Shares of Tech Mahindra ended at Rs 1,202.30, down by Rs 11.25, or 0.93 percent on the BSE.
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