Tech Mahindra, the technology arm of the Mahindra Group, on Thursday posted a 76.5% year-on-year growth in fourth-quarter net profit to ₹ 1,167 crore from ₹661 crore in the corresponding year-earlier period.
The profit jump was largely because of an ‘overall operating profitability improvement’ resulting also from an effective tax rate that came a little lower due to some tax benefits for the quarter as one-off and hence the profitability grew by quarter-on-quarter 130 basis points versus 40 that the EBIT grew on, the company said. .
The fourth quarter saw its revenue grow at 4% to ₹13,384 crore up from ₹12,871.3 crore in the period in the previous year, the company said, citing a decline in the communications segment globally which impacted the revenue growth.
For the full-year of FY2025, Tech Mahindra reported revenue of ₹52,988.3 crore, a 1.9% increase as against the full year revenue of ₹51,995.5 crore in the previous year. It recorded a net profit of ₹ 4,253 crore, up from ₹2,396.8 crore a year ago.
“Our deal wins were at $2.7 billion, reflecting a 42% year-on-year increase and are a clear validation of the depth of our client partnerships,” said Mohit Joshi, CEO and MD, Tech Mahindra.
This year, the tech firm laid a strong foundation for its transformation journey, Mr. Joshi said in his commentary adding, “Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap.”
According to Rohit Anand, CTO, Tech Mahindra, the company has delivered operational excellence by achieving a 60% increase in operating profit through strong execution, operational leverage, and cost management. “We raised our dividend per share by 12.5% and returned 85% of our free cash flow to shareholders, reflecting our commitment to capital allocation policy,” he added.
The board has recommended a final dividend of ₹30 per share for the fiscal ended March 2025.
Tech Mahindra reported attrition at 11.8% (LTM) in Q4. Total headcount at the end of FY25 stood at 1,48,731, down 1,757 employees when compared with the sequential quarter.
Published – April 24, 2025 08:18 pm IST