Tech Mahindra is likely to report dull fiscal second-quarter earnings on October 25. The IT firm’s Q2 FY24 net profit is expected to decline on a year-on-year (YoY) basis while its revenue is likely to remain flat due to lacklustre performance in the communications vertical, delayed telecom revenue and weak discretionary spends, according to analysts.Tech Mahindra’s EBIT margin is likely to be the major concern as brokerages expect a big contraction in Q2 FY24 on an on-year basis. The company’s deal wins are also expected to remain muted in the quarter under review, on account of weak macro and slow decision-making.
Tech Mahindra Q2 Results: IT firm announces interim dividend of ₹12 per share
Along with its financial result, Tech Mahindra Limited announced an interim dividend of ₹12 per equity share of face value of ₹5 each on Wednesday.
The company has fixed Thursday, November 2 as the record date for determining the members entitled to receive the interim dividend. The interim dividend will be paid on Tuesday, November 21 to equity shareholders
The IT major's net profit may decline around 37 percent YoY to Rs 822 crore, per the average of six brokerages’ estimates. However, sequentially, there might be an 18 percent rise. The quarter may witness certain one-time costs, said analysts.The company has fixed Thursday, November 2 as the record date for determining the members entitled to receive the interim dividend. The interim dividend will be paid on Tuesday, November 21 to equity shareholders of the firm whose names are listed as beneficial owners of the shares as of Thursday, November 2, in the records of depositories or the company's register of members.“The board of directors of the company at its meeting held today declared interim dividend of Rs. 12/- per equity share of Rs. 5/- each i.e. 240% of the face value," the company said in its exchange filing.IT major Tech Mahindra reported a 61.1 per cent year-on-year (YoY) fall in Q2FY24 consolidated net profit at ₹505.3 crore. In the same quarter last year, the company's net profit was ₹1,299.2 crore.Tech Mahindra Results Live: Ahead of the release of Q2FY24 results, the shares of Tech Mahindra was down by 1.27 percent at ₹1,140.50 apiece on the BSE at the closing bell. On the NSE, the stock was valued at ₹1,139.90 apiece at the closing bell, down 1.39 percent as against the previous day's close.Tech Mahindra share price has fallen 12% in one month, while the stock is flat in the past three months. Tech Mahindra shares have gained over 12% year-to-date (YTD).Tech Mahindra's total headcount stood at 148,297, at the end of the June quarter, down 4,103 quarter-on-quarter. The company has cash and cash equivalent at ₹7,701 crore as of June 30, 2023. The voluntary attrition during the quarter further fell to 13 per cent in the first quarter, compared to 15 per cent in the preceding January-March quarter of fiscal 2022-23 and 22 per cent in the year-ago period.The IT major's consolidated revenue from operations during the first quarter of the current fiscal stood at ₹13,159 crore, reporting a rise of 3.5 per cent, compared to ₹12,707 crore in the year-ago period.On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the June quarter declined 28.8 per cent year-on-year to ₹1,338 crore from ₹1,880 crore in the corresponding quarter last year.
You must be logged in to post a comment.