Tech Mahindra Announces Rs 15 Dividend, Sets November 1 as Record Date

Tech Mahindra's board has announced an interim dividend of Rs 15 per share in conjunction with the company's quarterly results for the period ending September 2024. The record date for determining shareholder eligibility is set for November 1.

In a statement released following the board meeting on Saturday, October 19, 2024, Tech Mahindra confirmed the approval of a 300% interim dividend, with Rs 15 per equity share of Rs 5 each.

“We wish to inform you that the Board of Directors of the Company have at their Meeting held today, Saturday, 19th October 2024 (IST), commenced at 00:00 am (IST), inter-alia, approved the following:- Declared Interim dividend of Rs. 15/- per equity shares of Rs. 5/- each, i.e. 300% of the face value,” stated the company in a filing to the exchanges.

The company also announced that the dividend payment will be made to shareholders by or before November 17. Tech Mahindra reported a consolidated profit of Rs 1,250 crore for the September quarter, marking a 153.1% year-on-year (YoY) increase, while revenue grew by 3.5% YoY to Rs 13,313 crore. On a sequential basis, profit rose by 46.81%, and revenue increased by 2.36%.

In the September quarter, Tech Mahindra's PAT margin improved to 9.4%, reflecting a 280 basis points (bps) increase quarter-on-quarter (QoQ) and a 560 bps rise year-on-year (YoY). The total contract value (TCV) of new deal wins amounted to $603 million.

"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. In line with our capital allocation policy the board has declared an interim dividend of Rs. 15 per share," mentioned Rohit Anand, Chief Financial Officer, Tech Mahindra.

Tech Mahindra shares closed at Rs 1,688 each on the BSE on Friday, marking a 0.68% decline from the previous day's close.