Tech Mahindra March Quarter Profit Falls 30% To Rs 804 Crore
IT major Tech Mahindra on Thursday reported a net profit of Rs 803.9 crore for the quarter ended March 31. That marked a fall of 29.85 per cent compared to its net profit of Rs 1,145.9 crore in the previous quarter. In a regulatory filing after market hours, Mumbai-based Tech Mahindra said its income of operations stood at Rs 9,490.2 crore in the final three months of financial year 2019-20, as against Rs 9,654.6 crore in the quarter ended December 31, 2019.
In dollar terms, the company's revenue came in at $1,294.6 million in the January-March period, down 4.3 per cent on a sequential basis, it said.
Tech Mahindra said its digital revenues grew 2.0 per cent quarter-on-quarter and accounted for 44 per cent of total revenues.
"COVID19 has brought an unprecedented change in business model for the IT industry. Ensuring wellness of employees and contribution to society while maintaining business continuity under all circumstances continues to be our priority," said CP Gurnani, managing director and CEO, Tech Mahindra.
"While the demand traction seen through the first three quarters of Fiscal 19-20 has reversed in Q4, we expect that the focus on Digital Transformation, Remote Working, and Network Modernization will recover in the medium term. The company has shown a strong growth for Fiscal 20 and we remain committed to deliver sustainable solutions to our customers enabling them to adopt to New Normal," he said.
The company's board recommended a final dividend of Rs 5 per share.
Tech Mahindra announced a "temporary tweak" in its brand logo and said it remains committed towards ensuring the well-being of its associates, clients and customers in the global fight against COVID-19.
Tech Mahindra Conveys Solidarity in Global Fight against COVID-19 through Temporary Tweak in Brand Logo👉Read more: https://t.co/m9mJt0A27B#TechMAgainstCovid19#DistantButConnected#Covid_19#CoronaUpdatepic.twitter.com/ckKb1V0UIXTech Mahindra (@tech_mahindra) March 28, 2020
Shares in Tech Mahindra ended 3.26 per cent higher at Rs 546.10 apiece on the BSE, in line with a 3.05 per cent gain in the benchmark S&P BSE Sensex index, ahead of the earnings announcement.