DXC revenue stable as net profit more than triples in FY20

The company attributes the growth to increased market demand for cloud infrastructure, enterprise applications, and digital workplace.
Written by Aimee Chanthadavong, Contributor on

DXC Technology Australia has reported that it continued to see ongoing growth during the 2020 financial year.

For the period ending 31 March 2020, the company recorded a net profit of AU$7.3 million, more than three times the $2.4 million reported last year.

"The group has demonstrated solid momentum during this period in executing on its transformation journey and bringing the 'new DXC' to its customers and people. This has been achieved by surrounding the business with differentiated market offerings and solutions, specialised sales executives to cross-sell the enterprise technology stack, and personalised customer focus alongside expert solution and scaled delivery capabilities," the company reported to the Australian Securities and Investments Commission.

The company's revenue also grew year on year, but only slightly by 0.2% to AU$2.3 billion.

"The increase in revenue reflects the growth in our cloud infrastructure, enterprise and cloud applications, and digital workplace offerings partially offset by ongoing migration out of legacy infrastructure environments," the company said.

Income tax expense more than doubled from AU$6.5 million to AU$14.7 million. This was made up of DXC having income tax owing of AU$10.5 million and deferred tax of AU$816,000, as well as AU$3.3 million adjustment for prior year's tax and AU$25,000 of unrecoverable withholding tax.

The financial report also revealed that during the year DXC acquired CeleritiFintech Services, while the company's wholly-owned subsidiary Xchanging Procurement Services purchased the remaining 10% minority interest in Xchanging Technology for intermediaries from IBNA.

DXC also said it deregistered 14 companies during fiscal 2020, including Computer Sciences Corporation Australia, Saltbush Training, and Stream Consulting Services. Despite this, DXC Technologies Australia remains the head company of over 70 subsidiaries globally, with a majority based in Australia.

Looking ahead, while DXC anticipates financial results during the current financial year and the subsequent financial year to be potentially impacted by COVID-19, the company remains upbeat about the future.

"Although COVID-19 has and will continue to have an impact on the industry at large, the group remains positive about its performance," it said. "The group's cross-selling efforts in the period was fueled by demand created by COVID-19, where customers have required additional support for employees working remotely as well as increasing automation to provide greater flexibility for workforces … the group is confident that the strategy and momentum it has set for FY21 will continue in FY22."

DXC Technology Australia employed 6,050 staff as of 31 March 2020.

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