TECH MAHINDRA Announces Quarterly Results (4QFY20); Net Profit Down 35.7%

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TECH MAHINDRA Announces Quarterly Results (4QFY20); Net Profit Down 35.7%
Mon, 4 May

TECH MAHINDRA has announced its results for the quarter ended March 2020. Here is a detailed performance review of the same:

TECH MAHINDRA Quarterly Financials

No. of Mths
Qtr. Ending
3
Mar-19*
3
Dec-19*
3
Mar-20*
QoQ ChangeYoY Change
Net SalesRs m88,92396,54694,902-1.7%6.7%
Other incomeRs m1,6713,4962,852-18.4%70.7%
TurnoverRs m90,594100,04297,754-2.3%7.9%
ExpensesRs m72,53680,91383,5993.3%15.3%
Gross profitRs m16,11515,63811,303-27.7%-29.9%
DepreciationRs m2,7043,8483,9823.5%47.3%
InterestRs m281550532-3.3%89.3%
Profit before taxRs m14,80114,7369,641-34.6%-34.9%
TaxRs m3,5353,6292,392-34.1%-32.3%
Profit after taxRs m11,26611,1077,249-34.7%-35.7%
Gross profit margin%18.116.211.9
Effective tax rate%23.924.624.8
Net profit margin%12.411.17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 6.7% on a year-on-year (YoY) basis. The expenses were up by 15.3% YoY during the same period.
  • The company's operating profit declined by 29.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.9% in 4QFY20 as against 18.1% in 4QFY19.
  • Depreciation charges increased by 47.3% and finance costs increased by 89.3% YoY, respectively.
  • Other income increased by 70.7% YoY during the quarter.
  • Net profit for the quarter declined by 35.7% YoY. Net profit margins during the quarter declined from 12.4% in 4QFY19 to 7.4% in 4QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 1.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.3% QoQ during the same period.
  • The company's operating profit declined by 27.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.9% in 4QFY20 as against 16.2% in 3QFY19.
  • Net profit for the quarter declined by 34.7% QoQ, while net profit margins declined from 11.1% in 3QFY19 to 7.4% in 4QFY20.

To see how TECH MAHINDRA has performed over the last eight quarters,please visit here.

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TECH MAHINDRA Share Price Performance

Over the last one year,TECH MAHINDRA share price has moved down from Rs 816.6 to Rs 504.9, registering a Loss of Rs 311.7 or around 38.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 13,624.4 (down 4.3%). Over the last one year it has moved down from 15,660.0 to 13,624.4, a loss of 2,036 points (down 13.0%).

Overall, the S&P BSE SENSEX is down 18.1% over the year.

Current Valuations

At the current price of Rs 504.9, the price to earnings (P/E) ratio of TECH MAHINDRA stands at 12.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.4 times.

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