Tech Mahindra Ltd., a specialist in digital transformation, consulting and business re-engineering services announced the audited consolidated financial results for its quarter ended June 30th, 2023.
Financial highlights for the quarter (USD)
- Revenue at USD 1,601 mn; down 4.0% QoQ, down 1.9% YoY
- Revenue reduced by 4.2% QoQ in constant currency terms
- EBITDA at USD 163 mn; down 33.7% QoQ, down 31.8% YoY; Margin at 10.2%, down 460bps QoQ
- Profit after tax (PAT) at USD 84 mn; down 38.0% QoQ, down 41.1% YoY
- Free cash flow at $ 106 mn, conversion to PAT at 126%
Financial highlights for the quarter (₹)
- Revenue at ₹ 13,159 crores; down 4.1% QoQ, up 3.5% YoY
- EBITDA at ₹ 1,338 crores; down 33.8% QoQ, down 28.8% YoY
- Consolidated PAT at ₹ 693 crores; down 38.0% QoQ, down 38.8% YoY
- Earnings per share (EPS) was at ₹ 7.82
Other Highlights
- Total headcount at 148,297 down 4,103 QoQ
- Cash and Cash Equivalent at INR 7,701 cr as of June 30, 2023
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said,
“Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long- term value for our customers and shareholders.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said,
“This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution.”
Key Wins
- Tech Mahindra was selected as a strategic partner by a large telecommunications operator in America to assist in the Cloud migration of ML platform; implement predictive analysis program to personalize Sales and Market Retention recommendations for the client by leveraging big data analytics and microservices development.
- Tech Mahindra was chosen by one of the largest tyre manufacturers in the world for its end-to-end enterprise process transformation. Tech Mahindra will be revamping core processes from Lead to Cash to Foreign Trade in what will be one of the largest strategic transformations in Europe
- Tech Mahindra won a multiyear strategic deal from a leading Networking OEM in America for managing their public cloud operations, including various workloads for its fast-growing AI-based SaaS offerings, and for its upcoming Data & Cloud-based offerings of its Engineering and IT units
- Tech Mahindra was selected by a large retail player in the US for Service desk management leveraging AI and bot first transformative technology with built-in quality automation
- Tech Mahindra was selected as a strategic partner by one of the leading technology companies in the world to augment AI capability by managing machine rewrites and content validation
| P&L in INR Mn | Q1 FY24 | Q4 FY23 | Q1 FY23 |
| Revenue | 131,590 | 137,182 | 127,079 |
| Cost of Services | 97,805 | 97,484 | 91,162 |
| Gross Profit | 33,785 | 39,698 | 35,918 |
| SG&A | 20,405 | 19,493 | 17,116 |
| EBITDA | 13,380 | 20,205 | 18,801 |
| Other Income | 1,917 | 3,055 | 1,221 |
| Interest Expense | 1,197 | 934 | 403 |
| Depreciation & Amortization | 4,466 | 4,902 | 4,767 |
| Impairment of Goodwill and non current assets | – | 2,126 | – |
| Share of profit / (loss) from associate | 78 | (50) | 3 |
| Profit before Tax | 9,712 | 15,248 | 14,855 |
| Provision for taxes | 2,676 | 3,999 | 3,380 |
| Minority Interest | 111 | 73 | 159 |
| Profit after Tax | 6,925 | 11,176 | 11,316 |
| EPS ( ₹ / share) | |||
| Basic | 7.8 | 12.7 | 12.8 |
| Diluted | 7.8 | 12.6 | 12.8 |
