Tech Mahindra’s net profits see a massive 32% drop even as its digital business is treading water amidst the COVID-19 crisis

• Indian IT giant Tech Mahindra has reported a massive 32% drop in net profits for the quarter ending on 31 March 2020 compared to last quarter.
• Overall, its revenues have fallen by 4.3% but its digital revenue bucked the trenc to grow by 2%.
• Tech Mahindra has announced a dividend ₹5 per share on face value of ₹5.

Tech Mahindra has reported a drop of 4.3% in dollar revenue in Jan-Marhc 2020, compared to three months ago. Its digital revenue bucked the trend to grow by 2%, which accounts for nearly half of the company’s business.

Its net profits have taken the bulk of the hit from the impact of Covid-19 reporting a massive fall of 32.1% from the previous quarter. “While the demand traction seen through the first three quarters of fiscal 2019-20 has reversed in Q4, we expect that the focus on digital transformation, remote working, and network modernization will recover in the medium term,” said CP Gurnani, Tech Mahindra CEO.

The company has announced a final dividend of ₹5 per share on face value of ₹5.