Tech Mahindra Ltd. announced an interim dividend of Rs 15 per share at a face value of Rs 5 each. The company has set Nov. 1 as the record date for determining the eligible members entitled to receive the dividend, according to an exchange filing on Saturday.
The IT firm is supposed to pay the interim dividend on or before Nov. 17 to the eligible shareholders whose names reflect in the register of members of the company.
The Pune based IT firm's net profit surged by 45.4% to Rs 1,257.5 crore in the second quarter of the current financial year, beating analysts' estimates. Revenue from operations stood at Rs 13,313.2 crore, up 2.4% sequentially and 3.5% on a year-on-year basis, meeting the Street's expectations.
Tech Mahindra Management Comments
"We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft," Chief Executive Officer Mohit Joshi said.
Joshi said the company is focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius. "(Project Fortius) has resulted in an expansion of margins for the third sequential quarter."
"This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cash flow generation as we continue our journey towards FY27 stated targets," Rohit Anand, chief financial officer at Tech Mahindra, said. "In line with our capital allocation policy, the board has declared an interim dividend of Rs 15 per share."
Shares of Tech Mahindra closed 0.65% lower at Rs 1,687.90 apiece on the NSE, compared to a 0.42% advance in the benchmark Nifty 50. The stock has risen 44% in the last 12 months and 32.63% on a year-to-date basis.
Nineteen out of 43 analysts tracking the company have a 'buy' rating on the stock, nine recommend 'hold' and 15 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies a potential downside of 8.2%.
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