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Last Updated : May 25, 2018 07:04 PM IST | Source: Moneycontrol.com

Tech Mahindra reports Q4 profit beats estimates at Rs 1,222 crore

IT attrition at the end of March 31, 2018 was at 18 percent as against 17 percent (YoY)

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Tech Mahindra on Friday reported its fourth-quarter numbers. The net profit grew 29.6 percent to Rs 1,222 crore compared to Rs 943.1 crore in the last quarter.

The Mumbai-based IT services firm reported 3.6 percent growth in revenue at Rs 8,054.5 crore in rupee terms as against Rs 7,776 crore (QoQ). It reported a dollar revenue of USD 1,244.3 million.

Analysts polled by Reuters, on average, had expected Rs 79,928 crore in revenue and profit of Rs 9,408 crore.

The company also said Milind Kulkarni, Chief financial officer will retire as the CFO on 31 May 2018. Manoj Bhat will take over as the CFO from June 1.

Bhat has been with the company for 12 years and held positions in finance and mergers and acquisition teams.

Tech Mahindra has achieved most of the goals it set out for itself in terms of operational metrics, becoming more digital and reskilling.

“We are way ahead in our investments in digital. It accounts for upwards of 26 percent of our overall revenues. We are on track to achieve our long term goal of becoming 50 percent digital,” Bhat told Moneycontrol.

“Continued focus on operational metrics has led to improved performance though the year. Growth in digital areas is particularly encouraging. We remain focused on delivering value to our customers, while helping our employees FUTURise with constant innovation in the digital world,” said CP Gurnani, CEO of Tech Mahindra in a statement.

The company reported 41.6 percent revenue from its largest vertical- communications, down from 46.3 percent a year ago.

Bhat said the numbers are in line with the company’s long term goal of letting go of certain businesses lines.

The company reported EBIT margin at 13.8% and EBIT At Rs 1,113.3 crore.

IT attrition at the end of March 31, 2018 was at 18 percent as against 17 percent in the last quarter.

The board recommended a dividend of Rs 14 per share on par value of Rs 5 (280%) for the financial year ended March 31, 2018.
First Published on May 25, 2018 03:55 pm
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