Tech Mahindra announces Rs 45 per share dividend as FY25 profit soars 80%
Tech Mahindra
has declared a final dividend of Rs 30 per share, taking the total dividend for FY25 to Rs 45 per share, following a robust financial year in which the IT major's consolidated net profit surged 80% to Rs 4,251.5 crore.
The board's decision to reward shareholders comes on the back of a strong March quarter, where the company reported a 76.5% year-on-year rise in net profit to Rs 1,167 crore, compared to Rs 661 crore in the same period last year, according to news agency PTI
Revenue during the quarter rose by 4% to Rs 13,384 crore, up from Rs 12,871 crore a year ago. Tech Mahindra's Chief Financial Officer Rohit Anand attributed the earnings boost to a one-time tax benefit.
"The effective tax rate has reduced to 22 per cent from the over 26 per cent due to a one-off item that helped the bottomline."
The company also saw a steep decline in impairment of goodwill and non-current assets, which dropped to Rs 27 crore from Rs 309 crore last year, further bolstering net profit.
Operating profit margin
rose to 10.5% in Q4, up 3.2 percentage points year-on-year. A senior company official stated Tech Mahindra is aiming to lift margins beyond 15% by the end of FY26.
New deal wins in Q4 came in at $ 798 million. Total headcount declined by 3,276 employees, settling at 1,48,731 by March 2025.
Despite hiring 6,100 freshers in FY25, the company has not issued guidance for FY26 fresher hiring, noting that hiring will depend on evolving demand conditions.
Sectoral trends and cash position
While BFSI showed growth, the company experienced softness in its core communications vertical and a decline in manufacturing revenues due to weakness in the auto sector. Tech Mahindra reported cash and equivalents of $ 896 million as of March 31, 2025.
Shares of Tech Mahindra closed 0.47% higher at Rs 1,446.10 on Thursday, outperforming the broader market, which declined by 0.39%.
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