Tech Mahindra which paid 900% dividend in FY22 may surprise investors on November 1 | Tech US News


IT major, Tech Mahindra will consider an 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 has been known to deliver huge dividends over the past few years. In FY22 alone, Tech Mahindra paid a whopping 900% dividend to its shareholders.

In its regulatory filing on Saturday, Tech Mahindra said, “We wish to inform that the Board of Directors may also consider the proposal to pay interim dividend for the financial year 2022-23 in its meeting on October 31 and November 1. 2022.”

“Payment of interim dividend will be considered by the board on November 1, 2022,” it added.

For the interim dividend, Tech Mahindra has set November 10 to determine the eligible shareholders for the benefit. This means, Tech Mahindra stock is more likely to go ex-dividend on October 31.

On Friday, Tech Mahindra stock closed higher. 1,041.25 per flat compared to the previous close on the BSE. The market cap of the company is over. 1.01 lakh crore.

At the current market price, Tech Mahindra’s profit yield is 4.3%.

In FY22, Tech Mahindra paid a total dividend of 900%. 45 per equity share to its shareholders.

In Q1FY23, the company reported a 16% YoY decline in net profit. 1,131.6 crore, however, revenue grew by 24.6% 12,708 crore. In constant currency terms, revenue growth was 3.5% quarter-on-quarter (QoQ). was at EBITDA. 1,880 crore in the first quarter of FY23.

Tech Mahindra’s peers Infosys, TCS, Wipro, Mindtree, and HCL Tech have already announced their Q2 results earlier this month. It will be closely watched to see how Tech Mahindra performs in Q2.

What to expect from Tech Mahindra’s Q2 results?

For the second quarter of FY23, Axis Securities said in its preview report, “We expect revenue to grow by 3.4% QoQ supported by new deal wins,” adding, “High offshoring Margins are likely to expand with the help of and favorable currency mix.”

According to Axis Securities, among the key things being monitored are — pipeline from Dell TVC and communication verticals; pricing scenario; Anger growth/margin/DSO outlook on the day; And comment on 5G rollout.

Meanwhile, in its Q2 preview report, stock brokerage Sharekhan analysts said, “The company is expected to grow soft CC revenue of 2.5% qoq led by organic growth of 2.1% qoq and thirdware acquisition completion. The gain will be 0.4%. Tech is Mahindra. Cross-currency is likely to have an impact of 190 bps.”

Further, Sharekhan’s note said, “We expect EBIT margin to improve marginally by 18 bps qoq as the full impact of wage revisions largely improves business utilization and rationalization from lower margin deals. will.”

On the stock, Sharekhan has assigned a ‘Buy’ rating with target price. 1,220 each on 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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