Tech Mahindra profit up 35%

New Delhi : IT major Tech Mahindra on Monday posted a 34.6 per cent rise in consolidated net profit to Rs 1,081.4 crore for the March 2020 quarter. Its net profit stood at Rs 803.9 crore in the corresponding period a year ago, Tech Mahindra said in a regulatory filing.

The Mumbai-based company saw its consolidated revenue from operations increasing 2.5 per cent to Rs 9,729.9 crore as against Rs 9,490.2 crore in the year-ago quarter, it added. For the full financial year, the net profit was up 9.8 per cent to Rs 4,428 crore, while revenue from operations was higher by 2.7 per cent to Rs 37,855.1 crore as compared to 2019-20.

Tech Mahindra Managing Director and Chief Executive Officer C P Gurnani said, "Our continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter. We are witnessing strong demand acceleration."

He added that the health and wellness of Tech Mahindra associates and community at large. Milind Kulkarni, chief financial officer at Tech Mahindra, said the company has witnessed substantial margin improvement and cash flow generation during the year.

"Our focus on delivery transformation will continue, as we increasingly witness a structural shift towards digital to adapt to the new normal. We are positioned uniquely to gain from this shift, while improving our financial and operating metrics going forward," he added.

The board of directors have recommended a final dividend of Rs 30 per share (including special dividend of Rs 15 per share) for the financial year ended March 31, 2021, subject to shareholder approval. The special and final dividend, if approved, will be paid by August 11, 2021.

This dividend is in addition to the special dividend of Rs 15 per share paid as interim dividend. The total dividend for 2020-21 will be Rs 45, the filing said. Tech Mahindra has also announced the acquisition of Eventus Solutions Group, a US-based consulting and technology service company.