Q4 Results 2022: Tech Mahindra, Welspun Enterprise and UCO Bank Report Rises
Q4 Results 2022: The earnings season is underway and several listed companies announced their March quarter results on Friday. Among them were Tech Mahindra, Welspun Enterprise and UCO Bank in their net profit year (YoY), escorts reduced post-tax profit (PAT). Here are the main highlights of the results:
Tech Mahindra Q4 Results 2022: Net Profit Increases 39%
IT services provider Tech Mahindra on Friday jumped 39 per cent to its consolidated net profit of Rs 1,678.4 crore for the March 2022 quarter and expressed confidence that the positive business momentum will continue in the current financial year.
On an individual basis, Mahindra Group Company reported a post-tax profit of Rs 1,505 crore for the quarter under review, up from Rs 1,081 crore a year ago.
The fifth largest IT services company closed at FY22 with a net profit of Rs 5,566 crore as against Rs 4,428 crore in FY21.
Revenue from operations increased to Rs 12,116 crore in the reporting quarter from Rs 9,729 crore in the year-ago period, while forex growth helped the company to profit on other earnings which stood at Rs 320 crore as against Rs 32.6 crore.
The company closed the quarter with a total contract value of US 1 1 billion and USD 3 billion in new contracts in fiscal year. The quarterly win includes a European 5G operator and other retail and healthcare sectors, company officials said.
Its managing director and chief executive, CP Gurnani, said he was “very confident” that the business would continue to grow at FY23. Vivek Agarwal, president of Corporate Strategy, said the company expects its communications, media and entertainment infrastructure, and upcoming Metavers offers to be attractive in the new fiscal year.
Agarwal added that the demand environment was strong and that other developments, such as the Russian invasion of Ukraine or fugitive inflation in the United States, had no effect on geopolitical tensions.
Chief Financial Officer-appointed Rohit Anand says the company has hired 10,000 freshers in FY22, and will continue to hire a mix of new and side workers. The total number of employees stands at 1.51 lakh.
With the supply side problem on mind, the company has given multiple assessments to employees and the average salary increase stands at 10 percent, Gurnani said.
Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said operating profit margins rose to 17.2 per cent from 20 per cent a year ago and 18 per cent in the previous quarter. It was mainly affected by low utilization levels and provided side issues such as extra pay increases and retaining workers’ money, he said.
Kulkarni said the profit line has benefited by reducing the tax rate by more than 17 percent, compared to 27 percent. The tax expenditure for the reporting quarter stood at Rs 136 crore as against Rs 511 crore in the year-ago period.
The company has committed USD 900 million for acquisitions in FY22 and will focus on consolidating companies acquired in FY23 over the past 18 months, Agarwal said.
On Friday, Tech Mahindra’s scrip fell 0.93 per cent to close at Rs 1,202.30 against the benchmark index, a 0.26 per cent correction.
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Escorts Q4 Results 2022: Net down 28% to Rs 190 crore
Escorts Limited, head of farm machinery and construction equipment, reported a 28.42 percent decline in consolidated net profit for the fourth quarter ended Friday, March 2022, driven by lower sales.
The company posted a consolidated net profit of Rs 265.41 crore in the same quarter last fiscal, Escorts said in a regulatory filing.
The consolidated revenue for the quarter under review stood at Rs 1,878.51 crore as against Rs 2,228.75 crore in the year-ago period.
For the quarter ended March 2022, tractor volume was 21,895 units, down 32.8 percent from 32,588 units a year earlier, the company said.
Construction equipment sales in the fourth quarter were 1,286 units, down 19.8 percent from the previous 1,604 units.
For the fiscal year ended March 31, 2022, Escorts stated that its consolidated net profit was Rs 735.61 crore, up from Rs 871.63 crore in the previous fiscal, a decrease of 15.6 per cent.
Revenue from FY22 operations stood at Rs 7,238.43 crore as against Rs 7,014.42 crore in FY21.
Nikhil Nanda, chairman and managing director of Escorts Limited, said the farm sector was seeing some positive tailwinds.
“With a normal monsoon forecast and good news for crop prices and production, we expect the sector to improve,” he said, adding that there are also signs of improvement in the construction and railway sectors.
If government spending is concentrated in this sector, the situation will improve from here, Nanda added.
However, he said, “Endless inflation is a major cause for concern, for suppressing potential demand as well as for the profitability of the ecosystem.”
Escorts said its board of directors has recommended a final dividend of 70 per cent at Rs 7 per share for the financial year 2021-22.
Shares of Escorts closed at Rs 1,549 on the BSE today, down nearly 0.2 per cent from Thursday’s close.
Welspun Enterprise Q4 Results 2022: Net Profit Rises 58% to Rs 65 Crore in January-March Quarter
Welspun Enterprise Ltd said on Friday that its consolidated net profit rose more than 58 per cent to Rs 65 crore for the quarter ended March 31 due to cost cuts.
Welspun Enterprise Limited (WEL) said in a statement that the company had posted a net profit of Rs 40.94 crore in the year-ago period.
However, its total revenue fell to Rs 534.64 crore between January-March 2022 from Rs 600.97 crore a year ago.
The total expenditure decreased by Rs 450.06 crore during the quarter under review from Rs 535.32 crore in January-March 2021.
“Q4FY22 has improved with the pick-up of some of our major hybrid annuity models (HAM) and the implementation of engineering, procurement and construction (EPC) projects. “WEL MD and CEO Ajay Hans said
The government’s emphasis on improving and expanding the infrastructure sector, especially in the road and water sectors, should be a good start for the industry, he said, adding to the pace of activity in industries affected by epidemics and other factors. Tidy.
Rising commodity prices are affecting margins across the industry, however, “we believe our cost optimization and project mix largely provide a hedge against inflationary pressures,” Hans added.
The company’s board has also approved a dividend of Rs 1.50 per share for the financial year 2021-22, according to the statement.
WEL, part of the Welspun Group, is an infrastructure development agency that focuses on road, water and wastewater segments.
Welspun Group includes line pipe, home textile, infrastructure, steel, advanced textile and flooring solutions.
Shares of Wellspan Enterprises ended at Rs 76.20 on the BSE today, up nearly 7 percent from Thursday’s closing price.
UCO Bank Q4 Results 2022: Net Debt Rises To Rs 312 Crore
State-owned UCO Bank jumped three times its net profit to Rs 312.18 crore for the quarter ended March 2022 on Friday as provisioning requirements declined due to the fall in bad loans.
Lenders posted a net profit of Rs 80 crore in the same quarter a year ago.
Total revenue for the fourth quarter of 2021-22, however, fell to Rs 4,362 crore from Rs 4,637 crore in the year-ago period, UCO Bank said in a regulatory filing.
For FY22 for the full financial year, the bank’s net profit increased more than five times from Rs 167 crore in FY21 to Rs 930 crore.
The total revenue for the year was Rs 18,082 crore, up from Rs 17,870 crore in the previous fiscal.
Lenders significantly reduced their share of bad assets as gross non-performing assets (NPAs) fell to 7.89 percent by the end of March 2022, from 9.59 percent at the end of March 2021.
In terms of value, gross NPA has come down from Rs 11,352 crore to Rs 10,237 crore.
Similarly, net NPA declined to 2.70 per cent (Rs 3,316 crore) from 3.94 per cent (Rs 4,390 crore).
Thus, provision for tax and other ancillary situations has also come down to Rs 466 crore in 4 FY22 from Rs 982 crore in the previous year.
Also, the Kolkata-headquartered lender said it retained a provision of Rs 4,707.36 crore (including technical write-off) – a requirement for 100 per cent bankruptcy and accounts included under the Bankruptcy Code (IBC).
In the prudent framework for resolving strained assets, the bank has placed an additional provision of Rs 702.32 crore in nine accounts, it added.
UCO Bank’s stock rose 3.98 per cent to Rs 11.49 on the BSE.
Input from PTI
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