About the Company:
Major tech-savvy company was initiated in 1986, headquartered in Pune, founded by Mahindra group with the vision of building digital change makers to disrupt new ideas, blaze new trials and create connected experiences for a connected world. The company provides information technology (IT) services and business process outsourcing (BPO) to companies in various vertical and horizontal markets.
Major tech savvy brand under the flagship of Mahindra group has declared the results for the fourth quarter of financial year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded at Rs.94,902 millions, declined 1.70% in the March quarter of FY20. Total expenditure (excluding interest and depreciation expenses) is Rs. 83,599 millions is down by 12.58%. EBITDA numbers decreased by 26%.
- YoY Performance: The Company has reported 6.72% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company is increased by 15.25%. EBIDTA numbers fell 21.61%.
- Profitability of the company: Net Profit of the company landed at Rs. 7,264 millions, decreased by 34.60% QoQ and 35.52% YoY.
- Dividend: The company has announced dividend of Rs. 5 per share for the financial year ended 31 March 2020.
As per Lokesh Sethia, SEBI Registered Research Analyst, mid-level tech savvy brand of India has posted a steep fall in profitability of the company. Despite the turmoil from the ongoing Covid-19, the company has recommened the final dividend that shows its cash-rich balance sheet. A stagnacy is highly expected in the sales growth due to ongoing Coronavirus as major institutions have signaled for a slippage in GDP rate. We advise you to 'Avoid' the stock in current scenario.