IT company Tech Mahindra on April 30 posted a 29 percent year-on-year fall in profit at Rs 803.9 crore for the quarter ended March 2020.
The numbers hit the estimates of analysts as a CNBC-TV18 poll had estimated the numbers to the tune of Rs 960 crore.
The company posted a net profit of Rs 1,132.5 crore in the corresponding period in the previous quarter and Rs 1,145.9 crore profit in the December quarter of FY20.
The company's board has proposed a final dividend of Rs 5 per share (100 percent) on the face value of Rs 5, in addition to the interim dividend of Rs 10 per share declared earlier.
EBIT for the quarter came at 949.6 crore and the margin was 10 percent. EBIT was 17.9 percent below, while margin was 180 bps below CNBC-TV18 estimates.
Revenue from operations stood at Rs 9,490.2 crore, down from Rs 9,654.6 crore reported in the December quarter. However, it was up from Rs 8,892.3 crore reported in the March quarter of FY19.
CNBC-TV18 had estimated the revenues to the tune of Rs 9,712 crore for the quarter.
EBITDA came at Rs 1,348 crore, down 13.8 percent QoQ, while margins came at 14.2 percent, down 200 bps QoQ, the company said in a BSE filing.
“Q4 has been a quarter where some of our metrics were impacted by the environmental challenges. Efficient operations, cost optimization and delivery automation will be the key focus areas going into the next year," Chief Financial Officer Manoj Bhat said.
"Our strong balance sheet combined with a focus on cash conservation will help us tide over the volatility in the near-term, as we look to emerge stronger and leaner to capture opportunities ahead.”
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said the coronavirus outbreak had brought an unprecedented change in the business model for the IT industry. "Ensuring the wellness of employees and contribute to society while maintaining business continuity under all circumstances continues to be our priority," he said.
"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 modernisation will recover in the medium-term. The company has shown strong growth for the fiscal 20 and we remain committed to delivering sustainable solutions to our customers enabling them to adapt to new normal.”
The currency plays a key role in IT companies' revenues as any depreciation in rupee plays out well for export companies.
The currency weakened by 6 percent during the March quarter as well as year-to-date 2020.
The stock fell sharply not only in the March quarter but also through 2019-20 and year-to-date 2020, down 25.8 percent, 27.1 percent, and 30.6 percent, respectively.
In comparison, BSE Information Technology index shed 17 percent, 16 percent, and 13 percent, respectively.Find All Earnings Related News Here