Tech Mahindra Q4 results: Net profit falls 26% to Rs 1,118 cr; IT firm declares Rs 32 dividend

IT firm Tech Mahindra Ltd on Thursday reported 26% decline in consolidated net profit at Rs 1,118 crore for the quarter ending March 31, 2023 as challenging macro-economic conditions prompted clients to tighten spending.

However, its revenue rose 13% to Rs 13,718 crore in Q4FY23.

CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said: “As we step into FY24, we see the increasing need for businesses to stay agile by leveraging next generation technologies. We are strongly focused on helping our customers stay competitively dominant and relevant in the era of fast evolving market conditions by helping them adapt to leaner and sustainable business models.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, said: "Our strategy of prudence and operational excellence helped us through the uncertainties of FY23. We continue to return cash to shareholders through a consistent dividend policy. We move into the next fiscal, with sharper focus on productivity improvements, cash & value creation for our stakeholders."

The company's board recommended final dividend of Rs 32 per equity share of Rs 5 face value i.e., 640% of the face value for the financial year ended March 31, 2023, subject to the approval of members of the Company at the forthcoming Annual General Meeting. The final dividend, if approved, will be paid by August 11, 2023. This dividend is in addition to special dividend of Rs 18 per share paid as interim dividend in November, 2022. The total dividend for FY23 will be Rs 50 per share on par value of Rs 5/- each i.e. 1,000%.

On Thursday, the company's scrip on BSE closed 0.8% higher at Rs 1,004.2.