Tech Mahindra, a leading Indian IT services company, recently released its Q4 FY24 results. While the headline numbers might raise some eyebrows, a closer look reveals a more nuanced picture. Let’s delve into the key aspects of Tech Mahindra’s Q4 results.
Revenue Dips But Margin Improves
Tech Mahindra’s revenue for Q4 FY24 witnessed a decline of 7.2% year-on-year (YoY) at USD 1.54 billion. This translates to a 6.4% decrease in constant currency terms. However, there’s a positive twist. The company’s EBITDA margin showcased a significant improvement, rising 22.9% QoQ to 10.9%. This indicates better cost management and operational efficiency.
Profitability Takes a Hit
The news on the profitability front isn’t as cheerful. Tech Mahindra’s net profit (PAT) for Q4 FY24 dipped by a substantial 41.5% YoY to USD 79 million. This translates to a 40.86% decline in rupee terms (₹ 661 crore). This drop can be attributed to various factors, which analysts are likely to delve into further.
Sequential Growth Offers Hope
Looking at the quarter-on-quarter (QoQ) trend, Tech Mahindra’s performance paints a slightly brighter picture. The company’s PAT witnessed a 29.5% increase compared to the previous quarter. This sequential growth suggests that Tech Mahindra might be on the path to recovery.
Dividend Declared
Despite the decline in profits, Tech Mahindra’s board declared a final dividend of ₹ 28 per share for the financial year ended March 31, 2024. This can be seen as a positive sign for investors seeking returns.
While the results offer some insights, a comprehensive analysis requires incorporating expert opinions. Financial analysts will likely provide their interpretations of Tech Mahindra’s Q4 performance, along with future outlooks. Overall, Tech Mahindra’s Q4 results present a mixed picture. The decline in revenue and profitability is a cause for concern. However, the improvement in EBITDA margin and sequential growth offer a glimmer of hope. Investors should closely monitor analyst commentary and future company developments for a clearer understanding of Tech Mahindra’s trajectory.
