Tech Mahindra Q2 PAT declines 5% YoY to Rs 1065 cr

The IT majors consolidated net profit declined 5.28% to Rs 1064.60 crore on 3.3% rise in revenues to Rs 9,371.80 crore in Q2 September 2020 over Q2 September 2019.

Oct 23, 2020 04:10 IST capital market

Sequentially, consolidated net profit rose 9.5% and revenue increased 2.9% in Q2 September 2020 (Q2FY21) over Q1 June 2020 (Q1FY21). Consolidated profit before tax (PBT) stood at Rs 1,409 crore in Q2 FY21, gaining 9.83% from Rs 1,283 crore in Q1FY21. Total tax expense rose 5.68% to Rs 346.20 crore in Q2 FY21 over Q1 FY21. The result was announced after market hours today, 23 October 2020.

Consolidated EBITDA grew by 31% to Rs 1,703 crore in Q2 September 2020 from Rs 1,300.50 crore in Q1 June 2020. EBITDA margin grew by 390 basis points to 18.2% in Q2 September 2020 over Q1 June 2020.

In dollar terms, the companys consolidated revenue stood at $1,265.4 million during the quarter, up 4.8% on a sequential basis. Profit after tax (PAT) rose 11.5% to $143.7 million in Q2 September 2020 over Q1 June 2020.

Total headcount stood at 1,24,258, up by 842 on a quarter-on-quarter (QoQ) basis. The companys cash and cash equivalent stood at $1,564 million as of 30 September 2020. Active Clients increased by 7% sequentially to 988 Q1 FY21.

Commenting on the performance, Manoj Bhat, CFO Tech Mahindra said, Strong execution on both revenue growth and operational metrics has helped to improve our performance on all fronts. Our cash conversion continues to be robust and we remain committed towards creating value for our shareholders through effective capital return.

The board of the IT major proposed a special dividend of Rs 15 per share and the record date is set on 2 November 2020. The dividend will be paid to shareholders on 12 November 2020.

Tech Mahindra also announced the acquisition of Tenzing and Tenzing Australia for a consideration of upto $29.5 million including earn-out. Tech Mahindra said the acquisition will bring strong capabilities primarily in the Insurance vertical along with expanding footprint in the Australia and New Zealand market.

Shares of Tech Mahindra rose 1.19% to Rs 848.1 on BSE today.

Tech Mahindra is engaged in the business of computer programming, consultancy and related services.

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