Tech Mahindra Announces Significant Dividend and Profit Growth

Tech Mahindra has declared a final dividend of Rs 30 per share, bringing the total dividend for FY25 to Rs 45 per share. This announcement follows a remarkable financial year where the IT giant witnessed an 80% surge in consolidated net profit, reaching Rs 4,251.5 crore.

Strong Quarterly Performance

The company's decision to reward shareholders is backed by a robust March quarter, showcasing a 76.5% year-on-year increase in net profit to Rs 1,167 crore, up from Rs 661 crore in the previous year. Quarterly revenue also saw a 4% rise to Rs 13,384 crore.

Financial Highlights and Future Goals

Tech Mahindra's CFO, Rohit Anand, highlighted a one-time tax benefit as a key factor behind the earnings boost, with the effective tax rate dropping to 22%. The company aims to exceed a 15% operating profit margin by FY26 end, following a current rise to 10.5% in Q4.

Operational and Sectoral Insights

New deal wins in Q4 amounted to $798 million, despite a headcount reduction of 3,276 employees. The company reported cash and equivalents of $896 million as of March 31, 2025, with mixed sectoral performance noted across BFSI, communications, and manufacturing sectors.

Market Response

Shares of Tech Mahindra closed 0.47% higher at Rs 1,446.10, outperforming the broader market's decline.