Tech Mahindra’s Total headcount at 147,620 up 2,165 QoQ, down 677 YoY; PAT rises 28.8% to 851 crores; EBIT margins expand 110 bps;
FinTech BizNews Service
Mumbai, July 25, 2024: Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industries, announced today the audited consolidated financial results for its quarter ended June 30th 2024.
Financial highlights for the quarter (USD)
• Revenue at USD 1,559 mn; up 0.7% QoQ, down 2.6% YoY o Revenue grew by 0.7% QoQ, and declined by 1.2% YoY in constant currency terms
• EBITDA at USD 188 mn; up 10.8% QoQ,15.3% YoY; Margin at 12.0%, up 110 bps QoQ,190 bps YoY
• Profit after tax (PAT) at USD 102 mn; up 28.6% QoQ, up 21.3% YoY
• Free cash flow at USD 106 mn
Financial highlights for the quarter (Rs)
• Revenue at Rs 13,005 crores; up 1.0% QoQ, down 1.2% YoY
• EBITDA at Rs 1,564 crores; up 11.1% QoQ, up 16.9% YoY; Margin at 12.0%, up 110 bps QoQ,190 bps YoY
• Consolidated PAT at Rs 851 crores; up 28.8% QoQ, up 23.0% YoY
• Earnings per share (EPS) at Rs 9.62
Other Highlights
• Total headcount at 147,620 up 2,165 QoQ, down 677 YoY
• Cash and Cash Equivalent at INR 8,055 cr as of June 30, 2024
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “The Q1 results are a positive start both for current turnaround year as well as for our medium-term strategy. As we mentioned in our strategic priorities, our focus continues to be on investing in the business for long term sustainable performance.”
Key Wins
• Tech Mahindra was selected by UK’s leading network services provider to build, operate, support, and maintain a strategic platform for their combined global and enterprise business units. TechM will deliver a platform for connectivity, cloud, and CPE devices along with ecosystem partners and provide operational support by migrating the customers from legacy to the new platform and enable optimization of the operations process. TechM will leverage its ADMS, Digital Enterprise Applications, Next-Gen Services and Network Services competencies. TechM was also selected to assist the customer in efficient fiber planning and running customer management programs by leveraging its Network Services and BPS competencies by providing managed services for planning the country-wide fiber rollout and in managing customer interactions with CPs and Field Engineers. The deal also encompasses digital transformation through implementation of curated solutions predicated on AI-ML, OCR, and Hyper Automation.
• Tech Mahindra was selected by a leading US based Telecom company to build, modernize, and operate various front and back-office applications for its wireless network services portfolio of products. The ADMS deal encompasses developing a unified customer 360 view for customer information management, customer experience and API integrations, case management, development, testing, support, and maintenance for a dealer access portal and back - office operations across database, ETL and BI management services.
• Sharecare selected Tech Mahindra to design and develop a personalized digital wellness platform for Medicaid members. This user-friendly mobile app platform was launched for Health Plan's Medicaid members, equipping them with essential tools to manage their health and navigate benefits with ease. Demonstrating exceptional collaboration and agility, Tech Mahindra and Sharecare successfully progressed from ideation and design to product launch in a record time of just seven months.
• Tech Mahindra was selected by a Japanese Automotive Manufacturer for the global rollout of its companywide SAP implementation as part of its digital transformation program. As per the program, TechM will migrate over 130 global sites from legacy ERP systems to SAP S/4HANA in four waves by leveraging its Digital Enterprise Applications competencies.
• TechM has signed a strategic partnership deal with Australia's healthcare company, marking a significant win in the APJ region. As a preferred digital transformation partner, TechM will collaborate to create a new operating model, addressing the client's challenges with legacy applications, sub-optimal customer experience, and business agility. This partnership will enhance client's IT efficiency, business agility, and customer experience through continuous innovation and strategic collaboration.
• Tech Mahindra was selected by a key ministry in the Middle East region for the implementation and support of their digital transformation program aimed at redefining the way it delivers its services to the country’s residents through a standardized and future proof landscape. TechM will setup the Services Delivery Platform and implement services and processes built on a low-code platform in partnership with ecosystem partners, combined with TechM’s competencies across Digital Enterprise Applications, Next-Gen Services, and Cloud & Infra Services.
• Tech Mahindra was selected by a leading developer and operator of shopping malls, retail, and leisure establishments in the Middle East for the digital transformation of their IT processes. The scope of work includes NexGen AI-Ops enabled digital transformation & integrated managed services by TechM along with an ecosystem partner to optimize and modernize customer’s IT landscape involving infrastructure, cloud and applications across all group companies covering six countries in the region, by leveraging TechM’s Cloud & Infra Services competencies.
