TECH MAHINDRA LIMITED - Quarterly Result Update Q4'425

Tech Mahindra Q4 Results: Margins expanded, beats street’s estimates. Revenue from operations declined marginally, 0.74%, to Rs 13,384.0 crore in the March quarter from Rs 13,285.6 crore recorded in the preceding quarter of FY24. Consolidated net profit advanced 18.66% to Rs 1,166.7 crore in Q4 FY25 as against Rs 983.2 crore reported in Q3 FY25 EBITDA stood at Rs 2011.60 crore in the quarter ended 31 March 2025, up 10% QoQ and up 36% YoY. EBIDTA margin came in at 13.74% in Q4 FY25, up 12 bps QoQ and 520 bps YoY. On a year-on-year (YoY) basis, Tech Mahindra's net profit soared 76.51%, while revenue grew 3.98% in Q4 FY25. In terms of dollars (USD), revenue stood at $1,549 million in Q4 FY25, registering de-growth of 1.2% QoQ and flat YoY. In constant currency terms, revenue declined by 1.5% QoQ and 0.3% YoY. Profit after tax was at $136 million, up 17.3% QoQ and up 70.8% YoY. Free cash flow was at $150 million in the March quarter. During the quarter, EBIT was at $163 million, up 2.8% QoQ and up 43.6% YoY. EBIT margin came in at 10.5% in Q4 FY25, up 40 bps QoQ and 320 bps YoY. The IT firm secured net new deals with a total contract value (TCV) of $798 million in the March quarter of 2025. Total headcount was at 148,731, registering de-growth of 2.5% QoQ and up 2.9% YoY. The last twelve months (LTM) IT attrition rate for Q3 FY25 was 11%, an increase from 10% in Q3 FY24 and a decrease from 11% in Q2 FY24. The total headcount stood at 148,731, down by 1,757 quarter-over-quarter (QoQ), but up by 3,276 year-over-year (YoY). The last twelve months (LTM) IT attrition rate for Q4 FY25 was 11.8%. The company’s board recommended a final dividend of Rs 30 per equity share for the financial year ended 31 March 2025. The final dividend recommended is in addition to the interim dividend of Rs 15 per equity share in November 2024. The total dividend for FY 2024-25 will be Rs 45 per equity share.