On consolidated basis
Quarter ended September 2022
compared with Quarter ended June 2022.
Net sales (including other operating income) of Tech Mahindra has increased
3.32% to Rs 13129.5 crore.
Operating profit margin has jumped
from 14.79% to 14.93%, leading to 4.23% rise in operating profit to Rs 1,959.70
crore. Employee cost increased from 51.55% to 52.52%.
Other expenses fell from 33.66% to 32.56%. Software
technology development services cost fell from 16.26% to 15.42%.
Other income rose 137.67% to Rs
290.2 crore. PBIDT rose 12.37% to Rs 2249.9
crore. Provision for interest rose 96.03% to Rs 79
crore. Loan funds remained nil.
PBDT rose 10.65% to Rs 2170.9
crore. Provision for depreciation rose 3.15% to Rs 491.7
crore.
Profit before tax grew 13.06% to Rs
1,679.20 crore. Provision for tax was expense of Rs 364.7 crore,
compared to Rs 338 crore. Effective tax rate was 21.92% compared to
22.75%.
Minority interest decreased 13.21%
to Rs 13.80 crore. Net profit attributable to owners of the company
increased 13.59% to Rs 1,285.40 crore.
Promoters’ stake was 35.22% as of 30
September 2022 ,compared to 35.24% as of 30 June 2022 .
Quarter ended September 2022
compared with Quarter ended September 2021.
Net sales (including other operating income) of Tech Mahindra has increased
20.66% to Rs 13129.5 crore. Sales of BPO segment has gone up 32.60%
to Rs 1,731.10 crore (accounting for 13.18% of total sales). Sales
of IT segment has gone up 19.03% to Rs 11,398.40 crore (accounting for 86.82%
of total sales).
Profit before interest, tax and
other unallocable items (PBIT) has slumped 0.56% to Rs 1,984.00
crore. PBIT of BPO segment rose 13.12% to Rs 269.00 crore
(accounting for 13.56% of total PBIT). PBIT of IT segment fell 2.41%
to Rs 1,715.00 crore (accounting for 86.44% of total PBIT).
PBIT margin of BPO segment fell from
18.22% to 15.54%. PBIT margin of IT segment fell from 18.35% to
15.05%. Overall PBIT margin fell from 18.34% to 15.11%.
Operating profit margin has declined
from 18.34% to 14.93%, leading to 1.78% decline in operating profit to Rs
1,959.70 crore. Employee cost increased from 49.78% to 52.52%.
Other expenses rose from 31.89% to 32.56%. Software
technology development services cost rose from 15.32% to 15.42%.
Other income rose 2.87% to Rs 290.2
crore. PBIDT fell 1.20% to Rs 2249.9 crore. Provision for
interest rose 123.16% to Rs 79 crore. Loan funds rose to Rs 2,830.10
crore as of 30 September 2022 from Rs 2,612.30 crore as of 30 September 2021. Inventories
declined from Rs 40.80 crore as of 30 September 2021 to Rs 18.30 crore as of 30
September 2022. Sundry debtors were higher at Rs 7,429.70 crore as
of 30 September 2022 compared to Rs 6,500.60 crore as of 30 September
2021. Cash and bank balance rose to Rs 4,727.80 crore as of 30
September 2022 from Rs 3,037.00 crore as of 30 September
2021. Investments declined from Rs 9,078.90 crore as of 30 September
2021 to Rs 3,139.10 crore as of 30 September 2022.
PBDT fell 3.17% to Rs 2170.9
crore. Provision for depreciation rose 43.35% to Rs 491.7
crore. Fixed assets increased to Rs 7,410.50 crore as of 30
September 2022 from Rs 3,604.60 crore as of 30 September
2021. Intangible assets increased from Rs 6,319.20 crore to Rs
7,597.00 crore.
Profit before tax down 11.57% to Rs
1,679.20 crore. Share of profit/loss was 1,812.50% lower at Rs -15.3
crore. Provision for tax was expense of Rs 364.7 crore, compared to
Rs 557.2 crore. Effective tax rate was 21.92% compared to 29.36%.
Minority interest increased 527.27%
to Rs 13.80 crore. Net profit attributable to owners of the company
decreased 3.98% to Rs 1,285.40 crore.
Equity capital increased from Rs
437.70 crore as of 30 September 2021 to Rs 439.50 crore as of 30 September
2022. Per share face Value remained same at Rs 5.00.
Promoters’ stake was 35.22% as of 30
September 2022 ,compared to 35.70% as of 30 September 2021 .
Year-to-date (YTD) results analysis.
Net sales (including other operating income) of Tech Mahindra has increased
22.57% to Rs 25837.4 crore. Sales of BPO segment has gone up 34.18%
to Rs 3,337.50 crore (accounting for 12.92% of total sales). Sales
of IT segment has gone up 21.02% to Rs 22,499.90 crore (accounting for 87.08%
of total sales).
Profit before interest, tax and
other unallocable items (PBIT) has slumped 0.19% to Rs 3,864.10
crore. PBIT of BPO segment rose 10.84% to Rs 542.90 crore
(accounting for 14.05% of total PBIT). PBIT of IT segment fell 1.79%
to Rs 3,321.20 crore (accounting for 85.95% of total PBIT).
PBIT margin of BPO segment fell from
19.69% to 16.27%. PBIT margin of IT segment fell from 18.19% to
14.76%. Overall PBIT margin fell from 18.37% to 14.96%.
Operating profit margin has declined
from 18.37% to 14.86%, leading to 0.82% decline in operating profit to Rs
3,839.80 crore. Employee cost increased from 50.18% to 52.04%.
Other expenses rose from 31.45% to 33.10%. Software
technology development services cost rose from 15.07% to 15.83%.
Other income fell 27.59% to Rs 412.3
crore. PBIDT fell 4.25% to Rs 4252.1 crore. Provision for
interest rose 62.31% to Rs 119.3 crore. Loan funds rose to Rs
2,830.10 crore as of 30 September 2022 from Rs 2,612.30 crore as of 30
September 2021. Inventories declined from Rs 40.80 crore as of 30
September 2021 to Rs 18.30 crore as of 30 September 2022. Sundry
debtors were higher at Rs 7,429.70 crore as of 30 September 2022 compared to Rs
6,500.60 crore as of 30 September 2021. Cash and bank balance rose
to Rs 4,727.80 crore as of 30 September 2022 from Rs 3,037.00 crore as of 30
September 2021. Investments declined from Rs 9,078.90 crore as of 30
September 2021 to Rs 3,139.10 crore as of 30 September 2022.
PBDT fell 5.37% to Rs 4132.8
crore. Provision for depreciation rose 43.66% to Rs 968.4
crore. Fixed assets increased to Rs 7,410.50 crore as of 30
September 2022 from Rs 3,604.60 crore as of 30 September
2021. Intangible assets increased from Rs 6,319.20 crore to Rs
7,597.00 crore.
Profit before tax down 14.32% to Rs
3,164.40 crore. Share of profit/loss was 1,400% lower at Rs -15
crore. Provision for tax was expense of Rs 702.7 crore, compared to
Rs 985.8 crore. Effective tax rate was 22.31% compared to 26.70%.
Minority interest increased 102.04%
to Rs 29.70 crore. Net profit attributable to owners of the company
decreased 10.21% to Rs 2,417.00 crore.
Equity capital increased from Rs
437.70 crore as of 30 September 2021 to Rs 439.50 crore as of 30 September
2022. Per share face Value remained same at Rs 5.00.
Promoters’ stake was 35.22% as of 30
September 2022 ,compared to 35.70% as of 30 September 2021 .
Cash flow from operating activities
increased to Rs 3,170.90 crore for YTD ended September 2022 from Rs 3,061.90
crore for YTD ended September 2021. Cash flow used in acquiring
fixed assets during the YTD ended September 2022 stood at Rs 430.50 crore,
compared to Rs 330.90 crore during the YTD ended September 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 increased to Rs 7,522.90 crore as of 31 March
2022 from Rs 5,128.60 crore as of 31 March 2021. Intangible assets
increased from Rs 4,008.20 crore to Rs 7,425.80 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.
Special Dividend: The
Board of Directors has approved a special dividend of Rs 18 per equity share of
Rs 5/- each.
Management commentary:
Commenting on the performance
Mr G P Gurnani, MD & CEO said:"We continue to focus on being
resilient and agile to ensure long-term value for our people, customers,
partners, and the society at large. While market conditions evolve and
supply-side challenges continue, we will strengthen our differentiated
offerings to help customers in their transformation journey through our
integrated & new-age solutions."
Commenting on the performance Mr Rohit Anand,
CFO said: "We have taken several targeted measures to achieve
operational efficiencies and ensure long term sustainable growth. While we
continue to address the dynamic market conditions, we will remain focused on
creating value for our stakeholders, through continued operational rigor,
robust cash generation and prudent capital a/location. Additionally, we have
also announced a special dividend of INR 18 per share, in line with our capital
a/location policy."
| Tech Mahindra : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202209 | 202109 | Var.(%) | 202209 | 202109 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 13,129.50 | 10,881.30 | 20.66 | 25,837.40 | 21,078.90 | 22.57 | 44,646.00 | 37,855.10 | 17.94 | | OPM (%) | 14.93 | 18.34 | -341 bps | 14.86 | 18.37 | -351 bps | 17.96 | 17.95 | 1 bps | | OP | 1,959.70 | 1,995.20 | -1.78 | 3,839.80 | 3,871.60 | -0.82 | 8,020.00 | 6,796.30 | 18.01 | | Other Inc. | 290.20 | 282.10 | 2.87 | 412.30 | 569.40 | -27.59 | 1,112.30 | 787.10 | 41.32 | | PBIDT | 2,249.90 | 2,277.30 | -1.20 | 4,252.10 | 4,441.00 | -4.25 | 9,132.30 | 7,583.40 | 20.42 | | Interest | 79.00 | 35.40 | 123.16 | 119.30 | 73.50 | 62.31 | 162.60 | 174.00 | -6.55 | | PBDT | 2,170.90 | 2,241.90 | -3.17 | 4,132.80 | 4,367.50 | -5.37 | 8,969.70 | 7,409.40 | 21.06 | | Depreciation | 491.7 | 343 | 43.35 | 968.4 | 674.1 | 43.66 | 1520.4 | 1457.7 | 4.30 | | PBT | 1,679.20 | 1,898.90 | -11.57 | 3164.4 | 3693.4 | -14.32 | 7449.3 | 5951.7 | 25.16 | | Share of Profit/(Loss) from Associates | -15.3 | -0.8 | -1,812.50 | -15 | -1 | -1,400.00 | 2.8 | 1.2 | 133.33 | | PBT before EO | 1663.9 | 1898.1 | -12.34 | 3149.4 | 3692.4 | -14.71 | 7452.1 | 5952.9 | 25.18 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 1663.9 | 1898.1 | -12.34 | 3149.4 | 3692.4 | -14.71 | 7452.1 | 5952.9 | 25.18 | | Taxation | 364.7 | 557.2 | -34.55 | 702.7 | 985.8 | -28.72 | 1822 | 1599.9 | 13.88 | | PAT | 1299.2 | 1340.9 | -3.11 | 2446.7 | 2706.6 | -9.60 | 5630.1 | 4353 | 29.34 | | Minority Interest (MI) | 13.8 | 2.2 | 527.27 | 29.7 | 14.7 | 102.04 | 64 | -75 | PL | | Net profit | 1285.4 | 1338.7 | -3.98 | 2417 | 2691.9 | -10.21 | 5566.1 | 4428 | 25.70 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 1285.4 | 1338.7 | -3.98 | 2417 | 2691.9 | -10.21 | 5566.1 | 4428 | 25.70 | | EPS (Rs)* | 13.21 | 13.75 | -3.98 | 24.83 | 27.66 | -10.21 | 57.19 | 45.50 | 25.70 | | | * EPS is on current equity of Rs 486.63 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 | td>-| | Quarter ended | Year to Date | Year ended |
|---|
| % of (Total) | 202209 | 202109 | Var.(%) | % of (Total) | 202209 | 202109 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
|---|
| Sales | | BPO | 13.18 | 1,731.10 | 1,305.50 | 32.60 | 12.92 | 3,337.50 | 2,487.30 | 34.18 | 12.23 | 5,460.80 | 3,805.60 | 43.49 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | IT | 86.82 | 11,398.40 | 9,575.80 | 19.03 | 87.08 | 22,499.90 | 18,591.60 | 21.02 | 87.77 | 39,185.20 | 34,049.50 | 15.08 | | Total Reported Sales | 100.00 | 13,129.50 | 10,881.30 | 20.66 | 100.00 | 25,837.40 | 21,078.90 | 22.57 | 100.00 | 44,646.00 | 37,855.10 | 17.94 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 13,129.50 | 10,881.30 | 20.66 | 100.00 | 25,837.40 | 21,078.90 | 22.57 | 100.00 | 44,646.00 | 37,855.10 | 17.94 | | PBIT | | BPO | 13.56 | 269.00 | 237.80 | 13.12 | 14.05 | 542.90 | 489.80 | 10.84 | 13.54 | 1,085.60 | 804.90 | 34.87 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | IT | 86.44 | 1,715.00 | 1,757.40 | -2.41 | 85.95 | 3,321.20 | 3,381.80 | -1.79 | 86.46 | 6,934.40 | 6,042.10 | 14.77 | | Total PBIT | 100.00 | 1,984.00 | 1,995.20 | -0.56 | 100.00 | 3,864.10 | 3,871.60 | -0.19 | 100.00 | 8,020.00 | 6,847.00 | 17.13 | | Less : Interest | | 79.00 | 35.40 | 123.16 | | 119.30 | 73.50 | 62.31 | | 162.60 | 174.00 | -6.55 | | Add: Other un-allcoable | | -241.10 | -61.70 | -290.76 | | -595.40 | -105.70 | -463.29 | | -405.30 | -720.10 | 43.72 | | PBIT Margin(%) | | BPO | | 15.54 | 18.22 | -267.60 | | 16.27 | 19.69 | -342.54 | | 19.88 | 21.15 | -127.05 | | Telecom Equipment Manufacturer | | 0.00 | 0.00 | 0.00 | | IT | | 15.05 | 18.35 | -330.65 | | 14.76 | 18.19 | -342.90 | | 17.70 | 17.75 | -4.86 | | PBT | 100.00 | 1,663.90 | 1,898.10 | -12.34 | 100.00 | 3,149.40 | 3,692.40 | -14.71 | 100.00 | 7,452.10 | 5,952.90 | 25.18 |
|
|