Tech Mahindra Announces Rs 15 Interim Dividend Amid Q2 Profit Surge, Record Date Set for November 1

Tech Mahindra has announced an interim dividend of Rs 15 per share, following the release of its quarterly results for the period ending September 2024. The company has set November 1 as the record date to determine who will be eligible for this dividend.

In a statement to the stock exchanges, Tech Mahindra said, “The Board of Directors, at their meeting held on Saturday, 19th October 2024, has approved an interim dividend of Rs 15 per equity share of Rs 5 each, which is 300% of the face value.” The company also mentioned that the dividend will be paid to shareholders by or before November 17.

In its quarterly report, Tech Mahindra revealed that its consolidated profit for the September quarter increased by 153.1% year-on-year (YoY), reaching Rs 1,250 crore, while revenue grew by 3.5% YoY to Rs 13,313 crore. On a quarter-on-quarter (QoQ) basis, profit rose by 46.81% and revenue by 2.36%.

During the quarter, the company’s profit margin (PAT) stood at 9.4%, which is an improvement of 280 basis points (bps) compared to the previous quarter and 560 bps compared to the same quarter last year. Tech Mahindra secured new deals worth $603 million in total contract value (TCV).

Revenue from the communications sector fell by 1.7% YoY, while the banking, financial services, and insurance (BFSI) sector saw a 4.5% increase YoY. Revenue from technology, media, and entertainment rose by 2.4%.

“This quarter shows consistent performance with higher deal wins, revenue growth, cost management, and steady cash flow. In line with our capital allocation policy, the board has declared an interim dividend of Rs 15 per share,” said Rohit Anand, Tech Mahindra’s Chief Financial Officer.

On Friday, Tech Mahindra’s stock closed at Rs 1,688 on the BSE, down 0.68% from the previous day.