Tech Mahindra Q1’22 Revenues up 14.6% Q1’22 Profit after tax up 42.2%

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Pune: Tech Mahindra Ltd., a specialist in digital transformation, consulting and business re-engineering services today announced the audited consolidat ed financial results for its quarter ended June 30, 2021.

Financial highlights for the quarter (USD)
Revenue at USD 1383.6 mn; up 4.1% QoQ and 14.6% YoYRevenue growth at 3.9% QoQ in constant currency termsEBITDA at USD 254.3 mn; down 4.4% QoQ, up 47.5% YoYMargins at 18.4%; down 160bps QoQProfit after tax (PAT) at USD 183.2 mn; up 24.1% QoQ and 42.2% YoYFree cash flow at $ 172.4 mn, conversion to PAT at 94.1%
Financial highlights for the quarter (₹)
Revenue at ₹ 10,198 crores; up 4.8% QoQ and 12.0% YoYEBITDA at ₹ 1,876 crores; down 3.7% QoQ, up 44.3% YoYPAT at ₹ 1,353 crores; up 25.1% QoQ and 39.2% YoY
Other Highlights
Total headcount at 126,263, up 5209 QoQCash and Cash Equivalent at USD 1818.2 mn as of June 30, 2021

CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said,

We have witnessed an all rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation. Our focus on key technology pillars wrapped around experience-led approach with TechM Nxt.Now will help us to capitalize on the strong demand momentum.

Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said,

We continue to build on our profitability journey and have reported highest ever quarterly Revenue and Profit After Tax this quarter. Delivery Excellence will be a cornerstone in improving our operational and financial metrics, as we look to capitalize on the incremental digital spends over the course of the year.

  • Tech Mahindra has won a deal with a leading UK telecom company for end to end customer experience for both consumer and enterprise businesses.
  • Tech Mahindra has been engaged by one of the largest private healthcare systems in US as a managed service partner for technology transformation.
  • Won a strategic digital assurance deal with an American technology company.
  • Tech Mahindra has been chosen by a Tier 1 US Telco in the data and analytics space for data platform modernization and cloud migration.
  • Tech Mahindra has been chosen by Tier 1 automotive equipment supplier for managed security services and greenfield service desk implementation.
  • Engaged by world’s Largest Public Funded Healthcare Program for establishing and managing contact centre operations for COVID vaccination programs.
  • Tech Mahindra has been chosen by an Australian government division as a digital transformation partner.
  • Tech Mahindra has won a deal with one of the largest railroad company in North America for strategic IT modernization leveraging the digital and analytics expertise.
  • Tech Mahindra has been selected by an Asia Pacific energy company for end to end transformation including infrastructure, cloud, cybersecurity services.
  • Tech Mahindra has been engaged by a large bank in Africa for core banking transformation.
  • Tech Mahindra to launch ‘Stablecoin-As-A-Service’ blockchain solution for global banks and financial institutions with Quantoz, Netherlands-based innovative Blockchain technology application incubator, specialized in building and implementing Blockchain-based solutions.
  • Tech Mahindra has joined the 1.5°C Supply Chain Leaders to reduce its greenhouse gas emissions across the full value chain.
  • Tech Mahindra and Rajasthan Royals, inaugural IPL (Indian Premier League) champions, have partnered to build on fan loyalty and fan monetization. This collaboration aims to derive three times the value from a loyal fan base using Tech Mahindra’s digital platform powered by next generation technologies.
  • Tech Mahindra has launched ServiceNow Business Unit to accelerate digital transformation for customers globally. It is focused on delivering innovative industry solutions for key verticals like Telecommunications, Media and Entertainment and Energy & Utility.
  • Tech Mahindra has announced partnership with TAC Security, the global leader of risk & vulnerability management, to enable next-generation enterprise security for customers globally.
  • Tech Mahindra foundation, the CSR (Corporate Social Responsibility) arm of Tech Mahindra announced its support to Mission Oxygen, an initiative by Democracy People Foundation, to ensure last mile delivery of oxygen supply across India. The partnership will stri ve to ensure that hospitals, nursing homes and medical care facilities, especially in tier -2 cities, get immediate access to oxygen.
  • Tech Mahindra is partnering with many of its global customers to collectively drive the COVID- 19 support movement in India.
  • Tech Mahindra has announced a partnership with the International Chess Federation for creating the Global Chess League together. The competition will be established as a first -of- its-kind “phygital” (physical and digital) league, engaging players from all levels – professional or otherwise.
  • Tech Mahindra has announced its support to #OxygenForIndia, a volunteer -run organization put together by the Center for Disease Dynamics, Economics & Policy (CDDEP), to deploy 3,000 oxygen concentrators and 40,000 oxygen cylinders to help resolve the oxygen crisis in India.
  • Tech Mahindra has received the Golden Peacock HR excellence award.
  • Tech Mahindra has been recognized amongst the top 10 trusted big data analytics companies in India 2021 – 2022 by TopAppDevelopmentCompanies.com.
  • Tech Mahindra has won 2 Awards at SAP Partner Summit-
    • INDIA Best GSSP Partner of the Year &
    • Best Customer Experience Partner at SAP India Partner Summit.
  • Tech Mahindra has been recognized as ‘Leader of the Year’ by CEO Today Magazine Middle East Awards 2021.
  • Tech Mahindra’s CEO, CP Gurnani has been recognized as ‘Inspiring CEO 2021’ by the Economic Times.
  • Tech Mahindra has been recognized among the Economic Times Iconic Brands 202.
  • Tech Mahindra has emerged as a winner of NASSCOM Engineering &Innovation Excellence Awards 2021 for Service Delivery Excellence & Next-Gen Products; for its projects on Vehicle Top Hats & Distributed Ledger DnD.

Audited consolidated financial for the first quarter ended June 30, 2021 drawn under Ind AS

P&L in INR MnQ1 FY22Q4 FY21Q1 FY21
Revenue101,97697,29991,063
Cost of Services69,68264,49765,105
Gross Profit32,29432,80225,958
    
SG&A13,53013,32112,953
EBITDA18,76419,48113,005
    
Other Income2,8733264,161
Interest Expense381417503
Depreciation & Amortization3,3113,4443,832
Impairment of Goodwill and non current assets507
Share of profit / (loss) from associate(2)21
    
Profit before Tax17,94315,44112,832
Provision for taxes4,2864,9983,276
Minority Interest(125)371167
Profit after Tax13,53210,8149,723
    
EPS ( ₹ / share)   
Basic15.4312.3711.13
Diluted15.3212.2611.07