On consolidated basis
Quarter ended June 2022 compared
with Quarter ended March 2022.
Net
sales (including other operating income) of Tech Mahindra has increased 4.88%
to Rs 12707.9 crore.
Operating profit margin has declined
from 17.24% to 14.79%, leading to 9.97% decline in operating profit to Rs
1,880.10 crore. Employee cost increased from 49.91% to 51.55%.
Other expenses rose from 32.85% to 33.66%. Software
technology development services cost rose from 15.74% to 16.26%.
Other
income fell 61.82% to Rs 122.1 crore. PBIDT fell 16.86% to Rs 2002.2
crore. Provision for interest fell 26.99% to Rs 40.3
crore.
PBDT fell 16.62% to Rs 1961.9
crore. Provision for depreciation fell 1.55% to Rs 476.7
crore.
Profit before tax down 20.53% to Rs
1,485.20 crore. Share of profit/loss was 93.33% lower at Rs 0.3
crore. Provision for tax was expense of Rs 338 crore, compared to Rs
328 crore. Effective tax rate was 22.75% compared to 17.51%.
Minority interest decreased 59.85%
to Rs 15.90 crore. Net profit attributable to owners of the company
decreased 24.85% to Rs 1,131.60 crore.
Promoters’
stake was 35.24% as of 30 June 2022 ,compared to 35.26% as of 31 March 2022
.
Quarter ended June 2022 compared
with Quarter ended June 2021.
Net sales (including other operating
income) of Tech Mahindra has increased 24.62% to Rs 12707.9
crore. Sales of BPO segment has gone up 35.93% to Rs 1,606.40 crore
(accounting for 12.64% of total sales). Sales of IT segment has gone
up 23.13% to Rs 11,101.50 crore (accounting for 87.36% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 0.20% to Rs
1,880.10 crore. PBIT of BPO segment rose 8.69% to Rs 273.90 crore
(accounting for 14.57% of total PBIT). PBIT of IT segment fell 1.12%
to Rs 1,606.20 crore (accounting for 85.43% of total PBIT).
PBIT
margin of BPO segment fell from 21.32% to 17.05%. PBIT margin of IT
segment fell from 18.02% to 14.47%. Overall PBIT margin fell from
18.40% to 14.79%.
Operating profit margin has declined
from 18.40% to 14.79%, leading to 0.20% rise in operating profit to Rs 1,880.10
crore. Employee cost increased from 50.62% to 51.55%.
Other expenses rose from 30.98% to 33.66%. Software
technology development services cost rose from 14.80% to 16.26%.
Other
income fell 57.50% to Rs 122.1 crore. PBIDT fell 7.46% to Rs 2002.2
crore. Provision for interest rose 5.77% to Rs 40.3
crore.
PBDT
fell 7.70% to Rs 1961.9 crore. Provision for depreciation rose
43.97% to Rs 476.7 crore.
Profit
before tax down 17.24% to Rs 1,485.20 crore. Provision for tax was
expense of Rs 338 crore, compared to Rs 428.6 crore. Effective tax
rate was 22.75% compared to 23.89%.
Minority interest increased 27.20%
to Rs 15.90 crore. Net profit attributable to owners of the company
decreased 16.38% to Rs 1,131.60 crore.
Promoters’
stake was 35.24% as of 30 June 2022 ,compared to 35.73% as of 30 June 2021
.
Full year results analysis.
Net sales (including other operating
income) of Tech Mahindra has increased 17.94% to Rs 44646
crore. Sales of BPO segment has gone up 43.49% to Rs 5,460.80 crore
(accounting for 12.23% of total sales). Sales of IT segment has gone
up 15.08% to Rs 39,185.20 crore (accounting for 87.77% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 17.13% to Rs
8,020.00 crore. PBIT of BPO segment rose 34.87% to Rs 1,085.60 crore
(accounting for 13.54% of total PBIT). PBIT of IT segment rose
14.77% to Rs 6,934.40 crore (accounting for 86.46% of total PBIT).
PBIT
margin of BPO segment fell from 21.15% to 19.88%. PBIT margin of IT
segment fell from 17.75% to 17.70%. Overall PBIT margin fell from
18.09% to 17.96%.
Operating profit margin has jumped
from 17.95% to 17.96%, leading to 18.01% rise in operating profit to Rs
8,020.00 crore. Employee cost decreased from 50.98% to 49.92%.
Other expenses rose from 31.07% to 32.12%.
Other
income rose 41.32% to Rs 1112.3 crore. PBIDT rose 20.42% to Rs
9132.3 crore. Provision for interest fell 6.55% to Rs 162.6
crore. Loan funds declined from Rs 2,900.80 crore as of 31 March
2021 to Rs 2,618.40 crore as of 31 March 2022. Inventories rose to
Rs 40.50 crore as of 31 March 2022 from Rs 24.20 crore as of 31 March
2021. Sundry debtors were higher at Rs 7,467.60 crore as of 31 March
2022 compared to Rs 6,472.80 crore as of 31 March 2021. Cash and
bank balance rose to Rs 3,974.50 crore as of 31 March 2022 from Rs 2,835.20
crore as of 31 March 2021. Investments declined from Rs 10,237.60
crore as of 31 March 2021 to Rs 4,883.80 crore as of 31 March 2022.
PBDT
rose 21.06% to Rs 8969.7 crore. Provision for depreciation rose
4.30% to Rs 1520.4 crore. Fixed assets declined from Rs 5,128.60
crore as of 31 March 2021 to Rs 3,864.30 crore as of 31 March
2022. Intangible assets increased from Rs 4,008.20 crore to Rs
11,084.40 crore.
Profit
before tax grew 25.16% to Rs 7,449.30 crore. Share of profit/loss
was 133.33% higher at Rs 2.8 crore. Provision for tax was expense of
Rs 1822 crore, compared to Rs 1599.9 crore. Effective tax rate was
24.45% compared to 26.88%.
Net
profit attributable to owners of the company increased 25.70% to Rs 5,566.10
crore.
Equity
capital increased from Rs 437.00 crore as of 31 March 2021 to Rs 438.80 crore
as of 31 March 2022. Per share face Value remained same at Rs
5.00.
Promoters’
stake was 35.26% as of 31 March 2022 ,compared to 35.76% as of 31 March 2021
.
Cash
flow from operating activities decreased to Rs 5,285.30 crore for year ended
March 2022 from Rs 8,093.80 crore for year ended March 2021. Cash
flow used in acquiring fixed assets during the year ended March 2022 stood at
Rs 958.40 crore, compared to Rs 666.00 crore during the year ended March
2021.
Management Commentary
Commenting on the performance CP
Gurnanai -CEO, said "We ore
starting this fiscal with a renewed commitment towards delivering consistent
organic growth. We remain resilient and watchful given the dynamic global
macro-economic environment and will continue to invest in new and emerging
technologies to deliver differentiated offerings. Our winning strategy rests on
the pillars — ‘Purpose, People and Performance’ which is aiding us to
responsibly capitalize on the strong demand environment in the market”
Commenting on the performance Mr Rohit Anand,
CFO said: “Delivery transformation, cost optimization and cash conversion will
be key focus areas, as we continue to offset the strong supply side headwinds
in the market. We aim to expand our profitability through operational
excellence and improved operating metrics over the course of FY’23."
| Tech Mahindra : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202206 | 202106 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 12,707.90 | 10,197.60 | 24.62 | 44,646.00 | 37,855.10 | 17.94 | | OPM (%) | 14.79 | 18.40 | -361 bps | 17.96 | 17.95 | 1 bps | | OP | 1,880.10 | 1,876.40 | 0.20 | 8,020.00 | 6,796.30 | 18.01 | | Other Inc. | 122.10 | 287.30 | -57.50 | 1,112.30 | 787.10 | 41.32 | | PBIDT | 2,002.20 | 2,163.70 | -7.46 | 9,132.30 | 7,583.40 | 20.42 | | Interest | 40.30 | 38.10 | 5.77 | 162.60 | 174.00 | -6.55 | | PBDT | 1,961.90 | 2,125.60 | -7.70 | 8,969.70 | 7,409.40 | 21.06 | | Depreciation | 476.7 | 331.1 | 43.97 | 1520.4 | 1457.7 | 4.30 | | PBT | 1,485.20 | 1,794.50 | -17.24 | 7449.3 | 5951.7 | 25.16 | | Share of Profit/(Loss) from Associates | 0.3 | -0.2 | LP | 2.8 | 1.2 | 133.33 | | PBT before EO | 1485.5 | 1794.3 | -17.21 | 7452.1 | 5952.9 | 25.18 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 1485.5 | 1794.3 | -17.21 | 7452.1 | 5952.9 | 25.18 | | Taxation | 338 | 428.6 | -21.14 | 1822 | 1599.9 | 13.88 | | PAT | 1147.5 | 1365.7 | -15.98 | 5630.1 | 4353 | 29.34 | | Minority Interest (MI) | 15.9 | 12.5 | 27.20 | 64 | -75 | PL | | Net profit | 1131.6 | 1353.2 | -16.38 | 5566.1 | 4428 | 25.70 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 1131.6 | 1353.2 | -16.38 | 5566.1 | 4428 | 25.70 | | EPS (Rs)* | 11.63 | 13.91 | -16.38 | 57.22 | 45.52 | 25.70 | | | * EPS is on current equity of Rs 486.39 crore, Face value of Rs 5, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| Tech Mahindra : Consolidated Segment Results | | | Quarter ended | Year ended |
|---|
| % of (Total) | 202206 | 202106 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
|---|
| Sales | | BPO | 12.64 | 1,606.40 | 1,181.80 | 35.93 | 12.23 | 5,460.80 | 3,805.60 | 43.49 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | IT | 87.36 | 11,101.50 | 9,015.80 | 23.13 | 87.77 | 39,185.20 | 34,049.50 | 15.08 | | Total Reported Sales | 100.00 | 12,707.90 | 10,197.60 | 24.62 | 100.00 | 44,646.00 | 37,855.10 | 17.94 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 12,707.90 | 10,197.60 | 24.62 | 100.00 | 44,646.00 | 37,855.10 | 17.94 | | PBIT | | BPO | 14.57 | 273.90 | 252.00 | 8.69 | 13.54 | 1,085.60 | 804.90 | 34.87 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | IT | 85.43 | 1,606.20 | 1,624.40 | -1.12 | 86.46 | 6,934.40 | 6,042.10 | 14.77 | | Total PBIT | 100.00 | 1,880.10 | 1,876.40 | 0.20 | 100.00 | 8,020.00 | 6,847.00 | 17.13 | | Less : Interest | | 40.30 | 38.10 | 5.77 | | 162.60 | 174.00 | -6.55 | | Add: Other un-allcoable | | -354.30 | -44.00 | -705.23 | | -405.30 | -720.10 | 43.72 | | PBIT Margin(%) | | BPO | | 17.05 | 21.32 | -427.29 | | 19.88 | 21.15 | -127.05 | | Telecom Equipment Manufacturer | | 0.00 | 0.00 | 0.00 | | IT | | 14.47 | 18.02 | -354.89 | | 17.70 | 17.75 | -4.86 | | PBT | 100.00 | 1,485.50 | 1,794.30 | -17.21 | 100.00 | 7,452.10 | 5,952.90 | 25.18 |
|
|