Tech Mahindra on April 24 reported a 77% jump in consolidated net profit at Rs 1,167 crore for the quarter ended March 31, 2025, largely due to lower subcontracting expenses and a deferred tax gain. The Mahindra group company had reported a net profit of Rs 661 crore in the year-ago period while the same was at Rs 983.2 crore in the quarter-ago period.
The IT services company's consolidated revenue from operations increased 4% to Rs 13,384 crore in the fourth quarter of the FY25 fiscal year from Rs 12,871 crore in the same period a year ago.
The IT firm also declared a final dividend of Rs 30 per share for FY25.
"This year, we laid a strong foundation for our transformation journey. Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap. Our deal wins at $2.7 billion, reflect a 42% year-on-year increase and are a clear validation of the depth of our client partnership," said Mohit Joshi, CEO, Tech Mahindra.
Shares of Tech Mahindra Ltd settled 0.49% higher at Rs 1,446.6 per share on the NSE on Thursday.
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “This year, we 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.”
The IT firm said its total headcount stands at 1,48,731, down 1,757 on a sequential basis and up 3,276 on an annual basis.
The IT services firm, which lagged its peers and is undergoing a turnaround under CEO Mohit Joshi, has also been under pressure due to its dependence on the communications vertical, whose revenue is tied to macroeconomic conditions.
It gets over a third of its revenue from this vertical. During the quarter, its revenue from the communications segment fell 2.2% on-year, which Joshi attributed to industry headwinds "due to a prolonged downturn in the sector."
He said the company is seeing "signs of stability returning" in the segment in Europe and Asia Pacific.
Its order bookings rose to $798 million from $500 million a year earlier.
For the full year FY25, revenue was up 0.2 percent YoY in constant currency terms (CC) to Rs 52,998.3 crores, net profit came in at Rs 4,253 crores.
Ebit margins for the full year stood at 9.7 percent, up 360 basis points (bps) YoY CC. Sequentially, it improved by 30 basis points to 10.5 percent.
One bps is one-hundredth of a percent.
Meanwhile, Tech Mahindra launched a new service offering, ‘TechM Consulting’ practice.
This is an evolved identity of TechM’s Business Excellence Division, and differentiates itself with client goals through an industry-focused approach, empowering enterprises with specialist consultants and embedding digital technologies and AI.
"A lot of it has been focused on maybe more horizontal transformation and change management capability. But we also had significant vertical capabilities in pockets, so we brought it all together under the TechM consulting umbrella," Joshi further added.
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