Tech M Q4 net slides 41% to ₹661 cr. on slowdown
The Hindu
Tech Mahindra's Q4 net profit and revenue declined, but CEO Mohit Joshi remains optimistic about FY25 growth prospects.
Tech Mahindra (Tech M) reported a 40.9% year-on-year slide in fourth-quarter net profit to ₹661 crore. Consolidated revenue for Q4, too, decreased 6.2% YoY to ₹12,871 crore as the company was witnessing slowdown and limited visibility across verticals including communications/telecom, media and entertainment.
Mohit Joshi, Tech Mahindra, Chief Executive Officer and Managing Director said most of the challenges his company faced were reflective of the global industry trends.
‘’FY24 posed its fair share of challenges for IT services in general, yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption. As we step into FY25, we look forward to improvement in clients’ spending, which fuels our optimism for a better revenue performance ahead,’‘ he said while addressing a media conference here on Thursday.
He anticipated FY25 would be a better year than the previous one, as global enterprises have increasingly understood the need to ‘‘address, adapt and defend’‘, and therefore green shoots were already visible in the Q1 of the new fiscal.
‘’We are confident that our actions will lead to steady growth in earnings in the coming years. We will continue to focus on operational excellence and cost savings to deliver better shareholder returns,’‘ said Rohit Anand, Chief Financial Officer, Tech Mahindra.
Tech Mahindra’s full fiscal (FY24) revenue decreased by 2.4% YoY to ₹51,996 crore and net profit more than halved YoY to ₹2,358 crore. Net new-deal bookings stood at $500 million, compared with $382 million in the previous quarter and $592 million in the year-earlier period. The company reported a headcount reduction of 795 during Q4, however, it hired 6,000 freshers in the fiscal. As on March 31, it had 1,45,455 employees.
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