Tech Mahindra net profit up 13% at Rs 4,298 crore in FY19; board declares dividend of Rs 14 per share

IT service firm Tech Mahindra on Tuesday announced the audited consolidated financial results for the fourth quarter and year ended March 31, 2019. A part of the USD 21 billion Mahindra Group, Tech Mahindra closed the financial year 2018-19 with a 12.9 per cent consolidated  revenue growth at Rs 34,742 crore against Rs 30,772 crore in the last fiscal.

By BusinessToday.In  
Tuesday, May 21, 2019

IT service firm Tech Mahindra on Tuesday announced the audited consolidated financial results for the fourth quarter and year ended March 31, 2019. A part of the USD 21 billion Mahindra Group, Tech Mahindra closed the financial year 2018-19 with a 12.9 per cent consolidated  revenue growth at Rs 34,742 crore against Rs 30,772 crore in the last fiscal.

"The profit after tax (PAT) grew by 13.1 per cent to Rs 4,298 crore in FY19 from Rs 3,799 crore achieved in the previous year," Tech Mahindra said in a filing to the Bombay Stock Exchange.

The company's operating profit (EBITDA) rose by 34 per cent to Rs 6,337 crore from Rs 4,709 crore in financial  year 2017-18.

In January-March quarter, the company posted revenue from operations at Rs 8,892.3 cr from Rs 8,054.5 in the March quarter FY18.

On a quarterly basis, the profit after tax stood at Rs 1,132.5 crore in Q4FY19 from Rs 1,222 crore in Q4FY18.

Commenting on earnings, C P Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra said, "We had a satisfactory year, characterized by significant margin improvements, a growing digital portfolio and considerable increase in deal wins. While our Enterprise business has performed satisfactorily during the year, we are encouraged by the revival of the Communications business. Our continued investments into our partner ecosystem for building a unique portfolio of 5G offerings will enable us to address the Networks of the Future opportunity."

"It has been a year of overall operational performance improvement on various fronts, leading to a significant expansion in EBITDA margin year on year. We initiated our maiden share buyback program on the back of a healthy cash conversion during the year, with a view to returning enhanced value to our shareholders," said Manoj Bhat, Chief Financial Officer, Tech Mahindra.

The company's board has recommended a final dividend of Rs 14 per share on face value of Rs. 5 for the financial year 2018-19.

Post the announcement, Tech Mahindra shares closed trade at Rs 773 a piece, down 5.55 points or 0.71 per cent, on the BSE on Thursday.

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