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Tech Mahindra Q4 net falls 29 pc to Rs 804 cr

Apr 30, 2020, 18:34 IST
PTI
New Delhi, Apr 30 () IT services firm Tech Mahindra on Thursday reported 29 per cent fall in consolidated net profit at Rs 803.9 crore for the March quarter, 2019-20.

The firm had logged a profit of Rs 1,132.5 crore in the year-ago same period, Tech Mahindra said in a statement.

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The net profit (excluding impairment) was at Rs 1,021 crore.

Revenue during the latest quarter stood at Rs 9,490.2 crore, up 6.7 per cent from Rs 8,892.3 crore in the year-ago period, as per Indian Accounting Standards.

Earnings per share (EPS) was at Rs 9.14 for the March quarter.For 2019-20, the company's net profit was at Rs 4,033 crore, while revenue was at Rs 36,867.7 crore.

COVID-19 has brought an unprecedented change in business model for the IT industry, Tech Mahindra Managing Director and CEO CP Gurnani said.

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"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," he said.

He added that the company has shown a strong growth for FY20 and remains committed to deliver sustainable solutions to customers enabling them to adopt to the "new normal".

Manoj Bhat, Chief Financial Officer of Tech Mahindra, said the fourth quarter saw some of its metrics being impacted by the environmental challenges.

"Efficient operations, cost optimisation and delivery automation will be the key focus areas going into the next year," he added.

Bhat said the company's strong balance-sheet combined with a focus on cash conservation will help it "tide over the volatility in near term" as it looks to emerge stronger and leaner to capture opportunities ahead.

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Its total headcount was at over 1.25 lakh, up by 4,154 year-on-year. Cash and cash equivalent stood at USD 1.16 billion as of March 31, 2020. SR ANUANU

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