Tech Mahindra Reports Strong Profit Growth

IT services company Tech Mahindra reported a consolidated net profit of ₹1,585.6 crore for the second quarter ended September. This marks a 32.7% increase from ₹1,194.5 crore in the corresponding quarter last year. Consolidated revenue from operations rose 15.6% to ₹16,180.2 crore. On a quarter-on-quarter basis, profit increased by 8%, while revenue grew by 3%.

Following the strong performance, the company’s board declared an interim dividend of ₹15 per equity share with a face value of ₹5, equivalent to 300%. To mark its 40th anniversary, the board also recommended a 1:1 bonus issue for shareholders, with the bonus shares scheduled to be issued by December 15. This is Tech Mahindra’s first bonus issue in 11 years; its previous 1:1 issue was in March 2015. The company added 5,446 employees during the quarter, taking its total workforce to 152,206.