Top Searches
Advertisement

Tech Mahindra Q4 Earnings Surprise Estimates: $798 Million of New Deals, Strong Profit Expansion, and Strategically Approved Merger


Updated: April 24, 2025 20:50

Image Source: Business Standard
Tech Mahindra reported its Q4 FY25 results with excellent performance in a backdrop of differential revenue trends and strategic corporate activities.
 
Key Takeaways:
  • Net New Deal Wins: The net new deal wins stood at $798 million during Q4, demonstrating strong customer traction and pipeline strength.
  • Revenue: Total revenue from operations was at ₹133.84 billion, close to the IBES estimate of ₹134.52 billion, showing a soft sequential growth, which was impacted by weakness in the hi-tech and BPO segments.
  • Profit: Net profit jumped to ₹11.67 billion, above the IBES estimate of ₹10.71 billion, witnessing a sharp year-on-year leap of about 77%, following operational efficiencies and cost-cutting measures such as Project Fortius.
  • Merger Approval: The board of Tech Mahindra approved a merger scheme by absorption of three wholly owned subsidiaries—Perigord Premedia, Perigord Data Solutions, and Tech Mahindra Cerium—simplifying operations and improving balance sheet efficiency.
  • Dividend: The firm declared a final dividend of ₹30 per share for FY25, following its shareholder-friendly payout tradition.
  • Operational Outlook: Even as the company witnesses a marginal revenue decline due to sector-specific issues, Tech Mahindra is riding seasonal recoveries in Comviva and enhancing deal quality, with margins likely to increase marginally with cost controls.
  • Market Sentiment: Analysts point out that although revenue expansion continues to be weak, the strong growth in profits and win of deals puts Tech Mahindra in good stead for long-term sustainable growth.
The current quarter's performance reaffirms Tech Mahindra's strength and strategic emphasis on high-margin business segments, operational excellence, and return to shareholders.
 
Sources: Economic Times, Financial Express, Moneycontrol

Advertisement

STORIES YOU MAY LIKE

Advertisement

Advertisement