Tech Mahindra has reported a net profit of Rs 664.2 crore, a decline of 41% in the fourth quarter of FY24, compared to Rs 1,125 crore recorded in the same period a year ago.

The company’s revenue from operations stood at Rs 12,871.3 crore, a fall of 6% in Q4 of FY24, against Rs 13,718.2 crore it reported in the fourth quarter of fiscal year 2022-23.

The IT-major’s operating profit or EBITDA stood at Rs EBITDA at Rs 1,408 crores, down 30.3% on year. However, it was up 22.8% on quarter.

Future roadmap

Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed, differentiates us from competitors. FY24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption.”

For the whole year, Tech Mahindra recorded operating profit at Rs 4,965 crores, down 38.2% year-over-year. Its net profit was fell 51.2% in FY24 to Rs 2,358 crore and revenue 2.4% on year at Rs 51,996 crore. Tech Mahindra’s highest revenue comes from communications, media, and entertainment, which fell 16.5% on year in the last quarter of financial year 2023-24.

“We are confident that our actions will lead to steady earnings growth in the coming years. We will continue to focus on operational excellence and cost savings to deliver superior shareholder returns,” said Rohit Anand, Chief Financial Officer of Tech Mahindra.

Its head count was reduced by 795 in the January-March quarter standing at 1,45,455. In the fourth quarter of FY24, the company’s total contract value was at $500 million.

Growth plan

The company unveiled the 3-year roadmap. For FY25, the company is calling it the turnaround phase. There will be front-end integration, Investment in accounts, key markets, service lines. In FY26- The Stabilization phase, the company aims to continue above normal investments and bring about full integration of portfolio companies. It will also focus on further progress on cost savings. In FY27- it plans on reaping returns through improved long-term structural mix and continuous improvement in pyramid

Dividend announced

Also, the board of Tech Mahindra recommended a final dividend of Rs 28 per equity share. “Recommended Final Dividend of Rs. 28 per equity share of the face value of Rs 5 each (560%) for the financial year ended 31st March, 2024, subject to the Members’ approval at the forthcoming Annual General Meeting (“AGM”) of the company,” said Tech Mahindra in an exchange filing.