IT software services company Tech Mahindra on Friday reported Rs 590 crore consolidated net profit for the fourth quarter (Q4) ended March 2017, a fall of 33 percent from Rs 876 crore in the corresponding period last year.
In a regulatory filing on the BSE, the company said consolidated revenue for the quarter under review grew 9.9 percent to Rs 7,733 crore from Rs 7,039 crore in the year-ago period.
Sequentially, Q4 net profit declined 30 percent from Rs 845 crore in Q3 while revenue dipped 2.6 per cent from Rs 7,713 crore during the December 2016 quarter.
For 2016-17, consolidated net profit declined 5.8 per cent to Rs 2,851 crore from Rs 3,027 crore in 2015-16, while total revenue grew 11 per cent to Rs 29,918 crore from Rs 26,934 crore.
Earnings before income tax, depreciation and amortisation (Ebitda) for Q4 also declined 22 percent over last year and 24 percent over last quarter to Rs 899 crore though operating margin grew 12 percent.
Ebitda dipped 2 percent to Rs 4,184 crore, while margin rose 14.4 percent.
The company's Board of Directors recommended 180 percent dividend or Rs 9 per share.
"Information technology the world over is going through a major shift with demand patterns changing constantly. Most businesses are battling the geopolitical uncertainties. As a digital transformation company, we see these as huge opportunities in the future. Our clients are approaching us with more problems to solve than ever before, which is a happy problem for us to deal with," Vice-Chairman Vineet Nayyar said in a statement.
The company's active client base increased by 36 to 843 during 2016-17 from 807 last year.
"The industry is going through a paradigm shift amid changing demand pattern from the clients, technological changes and requirement for skill enhancement. We have responded to those changes proactively by reimagining the business, imbibing a culture of innovation, encouraging reskilling and retraining of our workforce," CEO C.P. Gurnani said.
The company's cash reserves increased Rs 183 crore to Rs 5,383 crore over last year.
"We believe our ability to serve the customers across 'Run', 'Change', and 'Grow' embracing DAVID (Digitalisation, Automation, Verticalisation, Innovation and Disruption) in every conversation, with the objective of providing the right kind of experiences will continue to make us relevant for our clients," added Gurnani.
Total headcount stood at 117,693 as of March 31, 2017.
