Tech Mahindra on Friday reported 39.2 per cent y-o-y growth in profit after tax (PAT) touching ₹1,506 crores for the fourth quarter ended March 31, 2022, a significant jump from ₹1,081 crores in the same quarter last year.
On a consecutive quarter basis, PAT grew around 10 per cent from ₹1,368 crores. Consolidated PAT for FY22 surged by 25.7 per cent y-o-y to reach ₹5.566 crores.
Revenue from operations for Q4-FY22 stood at ₹12,116 crores, up by 24.5 per cent y-o-y from ₹9,729 crores. On a QoQ basis, it jumped 5.8 per cent from ₹11,450 crores in Q3-FY22.
Consolidated revenue from operations for FY22 touched ₹44,646 crores, growing 17.9 per cent y-o-y.
In Q4, the company clocked in net new deal wins worth $1.01 billion. Of this, CME (communications, media & entertainment) contributed around $645 million, while the remaining $366 million came from enterprise segment. For overall FY22, this stood at $3.28 billion.
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said, “Our improved growth performance reflects the power of human-centered experiences, a strong focus on innovation and our ability to create a strong customer and partner ecosystem. Tech Mahindra’s commitment towards sustainable digital transformation and investment in new-age technology stacks has resulted in one of the highest growth with large deal wins over the last 7 years.”
Attrition rate (LTM) for Q4-FY22 remained flat at 24 percent same as Q3. Total headcount stands at 151,173, growing 4.2 per cent QoQ.
In FY22, Tech Mahindra added more than 10,000 freshers and plans to add a similar number or more in FY23 as well.
“We have invested heavily in people. We are training them for hybrid working, upskilling them and enabling them to work from their hometown. It doesn’t matter whether it is Vijayawada or Warangal. We invested in Tier-II cities, opened 15 new centres, invested in global delivery centres. and started four new centres in Latin America and four new centres in Europe. Overall, the global delivery centre model is working very well for us. We have people working across 95 countries,” Gurnani said while addressing the media.
The company also has been actively hunting for possible mergers and acquisitions to plug in gaps in certain capabilities. Tech Mahindra closed FY22 with a total commitment of $900 million in M&A.
The Board of Directors recommended a final dividend of ₹15 per share and a special dividend of ₹15 per share on par value of ₹5(600%) for the financial year ended March 31, 2022, subject to approval from the members of the Company at the forthcoming annual general meeting.
“The final dividend, if approved, will be paid by 9 August, 2022. This dividend is in addition to Special Dividend of ₹15 per share paid as interim dividend in November 2021. The total dividend for FY 2021-22 will be ₹45 per share on par value of ₹5(900%),” the company said
New Chief Financial Officer
Tech Mahindra also announced the appointment of new CFO Rohit Anand who will take over the reins from Milind Kulkarni from June 1, 2022 onwards. Kulkarni will be retiring after working with the company for over two decades.
Anand has already been working with Tech Mahindra as Global Head, Business Finance for over a year.
Gurnani said, “Milind has been an integral part of Tech Mahindra for the last two decades, and we are immensely grateful for his contribution to the growth of the organisation. We would also like to congratulate Rohit Anand as he takes on a new role and wish him all the best for the future.”
May 13, 2022