Tech Mahindra Q4 net falls 29%; recommends final dividend of Rs 5/share

IT services company Tech Mahindra on Thursday missed the profit estimates for Q4FY20 on higher employee costs and one-time impairment charge even as the company said it was expecting recovery in demand in the medium term.

The Pune-headquartered firm reported Rs 804 crore in consolidated net profit in the March quarter (Q4FY20), a decline of 29.1 per cent on year-on-year (YoY) basis. On a sequential quarter basis, it dropped 30 per cent. The company took an impairment charge of Rs 217.5 crore during the quarter for writing off goodwill and non-current assets.

Revenue for the quarter stood at Rs 9,490 crore, a growth rate of 6.7 per cent YoY, though it fell 1.7 per cent sequentially. In dollar terms, revenues stood at $1,294.6 million, a decline of 3.3 per cent QoQ.