DXC Technology records 85% bump in profits for FY21

DXC Technology Australia continued to experience significant growth while it focused on cost cutting during the 2021 financial year.

For the period ending 31 March 2021, the company recorded net profit after tax of nearly AU$50 million, an 85% uplift on last year's reported AU$7.3 million.

"We are showing up as the 'new DXC' for our customers and people. We have done well in attracting talent, caring for our people, strengthening our customer relationships, taking cost out without disruption, continuing to win in the market with our simplified offerings across the enterprise technology stack, and improving our financial position," the company said.

Revenue declined slightly, however, by 4% from AU$2.31 billion to AU$2.22 billion for the financial year. DXC said the revenue decrease was "primarily due to project terminations and project completions offset by additional services provided to new and existing customers".

"In FY21, we made great progress on our transformation journey. We are delivering for our customers, keeping more of the work we have and generating new business while driving customer intimacy," the company said.

Income tax came in at AU$22.8 million, compared to last year's tax bill of AU$14.7 million. This was made up of DXC having income tax owed of AU$26 million and deferred tax loss of AU$5.7 million, as well as a AU$2.44 million adjustment for the prior year's tax and AU$28,000 of recoverable withholding tax.

DXC's larger tax bill this year was offset by declines in other company expenses including IT, which was reduced by AU$43 million to AU$186 million; contract-related expenses that fell by AU$27 million to AU$679 million; travel and related expenses that reached barely AU$2 million 2021 compared to AU$14 million in 2020.

There was also a reduction in net finance expenses that more than halved to AU$11.7 million, due to a fall in interest expense and interest expense on lease liabilities.

DXC also deregistered 14 companies during fiscal 2021, including UXC Solutions, Payfields, and iSoft Primary Care, CSCA Capital Finance, and Sable37 CRM. Despite this, DXC Technologies remains the head company of over 65 subsidiaries globally, with a majority based in Australia. 

The financial report also detailed that during the year, DXC Technology Australia repaid AU$300 million and AU$500 million on 23 April 2020 and October 2020, respectively, of external debt to Mizuho Bank, and that it also received a loan of AU$250 million from DXC UK.

Further, the report said on 21 October 2020, Sable Systems Pty Ltd sold Sable37 Systems India Pvt Ltd to Xchanging Technology Services India Pvt Ltd for AU$475,000, and DXC Technology Australia sold Sable Systems to DXC Technology US for just under $3 billion.

"The group has concentrated on enhancing customer relationships by proactively listening to their needs and delivering excellence. We have also added some outstanding IT industry talent to our leadership team who are focused on advancing the Group's market position, improving its operational performance, and inspiring our people," the company stated.

DXC Technology Australia employed 5,206 staff as of 31 March 2021. 

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