IT major, Tech Mahindra will consider interim dividend for FY23 on November 1. Along with the dividend proposal, the company’s board will also consider and approve the financial performance for the second quarter ending September 30, 2022 (Q2FY23). The tech giant is known to pay huge dividends over the years. In FY 2012 alone, Tech Mahindra paid 900% dividend to its shareholders.
In its regulatory filing on Saturday, Tech Mahindra “We would like to inform that the Board of Directors will also consider the proposal for interim payment,” it said. Dividend for the financial year 2022-23, in the meeting scheduled on 31 October and 1 November 2022.”
“The payment of interim dividend will be considered by the Board on 1st November 2022,” it said.
For the interim dividend, Tech Mahindra has fixed November 10 as the date for determining the shareholders eligible for the profit. This means, Tech Mahindra stock is most likely to have an ex-dividend on 31st October.
Tech Mahindra’s stock closed on Friday 1,041.25 flat as compared to previous close on BSE. The company’s market cap is over 1.01 lakh crore.
At the current market price, Tech Mahindra’s dividend yield stands at 4.3%.
In FY22, Tech Mahindra paid an overall dividend of 900% 45 per equity share to its shareholders.
In Q1FY23, the company reported a 16% year-on-year decline in net profit 1,131.6 crore, however, revenue grew by 24.6% year-on-year 12,708 crores. In constant currency terms, revenue growth stood at 3.5% quarter-on-quarter (QoQ). was on EBITDA 1,880 crore in Q1FY23.
Tech Mahindra’s peers Infosys, TCS, Wipro, Mindtree and HCL Tech have declared their second quarter results earlier this month. It will be keenly watched how Tech Mahindra performs in the second quarter.
What to expect from Tech Mahindra’s Q2 results?
For the second quarter of fiscal 2013, Axis Securities said in its preview report, “We expect revenue to increase by 3.4% QoQ from the ramp-up on New Deal wins,” a move to expand margins, aided by higher off-shoring. Chances are. and favorable currency mix.”
The key monitorables as per Axis Securities are — Deal TCV and Pipeline from the Communications vertical; pricing scenario; attrition; Outlook on Growth/Margin/DSO Day; and commentary on the 5G rollout.
Meanwhile, in their Q2 preview report, analysts at stock brokerage Sharekhan said, “The company expects to report soft CC revenue growth of 2.5% qoq, driven by organic growth of 2.1% qoq and full benefit of Thirdware acquisition.” 0.4%. Tech Mahindra is likely to have a cross currency effect of 190 bps.”
Further, Sharekhan’s note said, “We expect EBIT margin to improve marginally by 18 bps QoQ due to full impact of wage revision, largely due to improved utilization and rationalization of business from low margin deals.” offers.”
On share, Sharekhan has . Is rated ‘Buy’ with a target price of 1,220 each at Tech Mahindra.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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