5 Minutes Read
Tech Mahindra Q4 Results: CEO Mohit Joshi hopeful of growth returning by second half of FY25
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
Tech Mahindra’s shares had declined 5% in the one month ahead of earnings. For 2024, the stock is down 8.2%.
Tech Mahindra’s new CEO Mohit Joshi said in a post earnings address that financial year 2025 will be a better year compared to financial year 2024.
For the March quarter, Tech Mahindra reported a net profit of ₹661 crore, which was lower than the CNBC-TV18 poll of ₹749 crore. On a sequential basis, net profit increased by 29%.
Revenue in US Dollar terms stood at $1,548 million, which was in-line with expectations of $1,554.5 million. In rupee terms, revenue stood at ₹12,871.3 crore, largely in-line with the ₹12,923 crore estimate. When compared to the December quarter, Tech Mahindra’s revenue declined by 1.8%.
In constant currency terms, revenue dropped by 0.8% quarter-on-quarter. Constant currency revenue for Tech Mahindra has declined in three out of the last four quarters.
CEO Joshi told CNBC-TV18 that the March quarter marked the low point for Tech Mahindra’s growth trajectory and that the company will be fully back on the growth path by the second half of financial year 2025.
Joshi also said that the volatility in discretionary spends remains quite high with limited visibility. That volatility is compounded given the company’s very high exposure to the telecom vertical.
For the quarter, the Communications, Media and Entertainment (CME) business contributed to 36% of the overall topline and saw a decline of 2.8% on a sequential basis. Joshi also asserted that the telecom business remains the heart of Tech Mahindra and that there is no plan to marginalise that business.
EBIT or Earnings Before Interest and Tax fell 9.3% from the previous quarter to ₹637.7 crore, while a CNBC-TV18 poll had projected the figure to be ₹960 crore. EBIT margin stood at 7.4%.
Tech Mahindra won deals worth $500 million during the quarter. The company plans to grow selectively in certain markets with focus on US and Europe. Together, both US and Europe contributed to three-quarters of the company’s topline during the quarter.
Shares of Tech Mahindra ended 0.4% higher on Thursday at ₹1,190.75.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
