Tech Mahindra in red

Tech Mahindra posted a much lower-than-expected set of earnings for Q4FY21. Its consolidated net profit came in at Rs.1081 crore, a fall of 17% (QoQ). This was on a flat set of revenue at Rs.9730 crore v/s Rs.9647 crore.

EBITDA was up 1% at Rs.1553 crore while margins increased 10 bps to 16%.

In terms of business verticals, communications rose 1.4%, manufacturing 1.9% technology, media and entertainment was flat with 0.5% growth. BFSI did well with a 5% growth while retail, transport and logistics was down 3%.

In terms of geography, revenue from America fell 1.3% while Europe rose 2% and RoW showed a good 6% growth.

Its active client list has gone up from 997 to 1007. In terms of employees, total now stands at 1,21,054; some 847 lower on sequential basis.

The company announced an interim and special dividend of Rs 15 a share, which will be paid by August 11, 2021.

The market does not seem to be too impressed with these numbers as it opened in the red and then slipped 1.5% to Rs.948.65 and is now trading at Rs.952 levels, down around 1%. Its 10% LC for the day is at Rs.866.85.