On consolidated basis
Quarter ended June 2023 compared
with Quarter ended March 2023.
Net
sales (including other operating income) of Tech Mahindra has declined 4.08% to
Rs 13159 crore.
Operating profit margin has declined
from 13.18% to 10.17%, leading to 26% decline in operating profit to Rs
1,338.00 crore. Employee cost increased from 52.43% to 54.47%.
Other expenses rose from 34.40% to 35.36%. Software
technology development services cost fell from 14.11% to 14.00%.
Other
income fell 37.25% to Rs 191.7 crore. PBIDT fell 27.62% to Rs 1529.7
crore. Provision for interest rose 28.16% to Rs 119.7
crore.
PBDT fell 30.20% to Rs 1410
crore. Provision for depreciation fell 8.89% to Rs 446.6
crore.
Profit before tax down 37.03% to Rs
963.40 crore. Provision for tax was expense of Rs 267.6 crore,
compared to Rs 399.9 crore. Effective tax rate was 27.55% compared
to 26.22%.
Minority interest increased 52.05%
to Rs 11.10 crore. Net profit attributable to owners of the company
decreased 38.04% to Rs 692.50 crore.
Promoters’
stake was 35.16% as of 30 June 2023 ,compared to 35.18% as of 31 March 2023
.
Quarter ended June 2023 compared
with Quarter ended June 2022.
Net sales (including other operating
income) of Tech Mahindra has increased 3.55% to Rs 13159
crore. Sales of BPO segment has gone up 21.15% to Rs 1,946.20 crore
(accounting for 14.79% of total sales). Sales of IT segment has gone
up 1.00% to Rs 11,212.80 crore (accounting for 85.21% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 28.83% to
Rs 1,338.00 crore. PBIT of BPO segment rose 16.10% to Rs 318.00
crore (accounting for 23.77% of total PBIT). PBIT of IT segment fell
36.50% to Rs 1,020.00 crore (accounting for 76.23% of total PBIT).
PBIT
margin of BPO segment fell from 17.05% to 16.34%. PBIT margin of IT
segment fell from 14.47% to 9.10%. Overall PBIT margin fell from
14.79% to 10.17%.
Operating profit margin has declined
from 14.79% to 10.17%, leading to 28.83% decline in operating profit to Rs
1,338.00 crore. Employee cost increased from 51.55% to 54.47%.
Other expenses rose from 33.66% to 35.36%. Software
technology development services cost fell from 16.26% to 14.00%.
Other
income rose 57% to Rs 191.7 crore. PBIDT fell 23.60% to Rs 1529.7
crore. Provision for interest rose 197.02% to Rs 119.7
crore.
PBDT
fell 28.13% to Rs 1410 crore. Provision for depreciation fell 6.31%
to Rs 446.6 crore.
Profit
before tax down 35.13% to Rs 963.40 crore. Share of profit/loss was
2,500% higher at Rs 7.8 crore. Provision for tax was expense of Rs
267.6 crore, compared to Rs 338 crore. Effective tax rate was 27.55%
compared to 22.75%.
Minority interest decreased 30.19%
to Rs 11.10 crore. Net profit attributable to owners of the company
decreased 38.80% to Rs 692.50 crore.
Promoters’
stake was 35.16% as of 30 June 2023 ,compared to 35.24% as of 30 June 2022
.
Full year results analysis.
Net sales (including other operating income) of Tech
Mahindra has increased 19.36% to Rs 53290.2 crore. Sales of BPO
segment has gone up 31.72% to Rs 7,193.00 crore (accounting for 13.50% of total
sales). Sales of IT segment has gone up 17.64% to Rs 46,097.20 crore
(accounting for 86.50% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 0.11% to Rs
8,028.60 crore. PBIT of BPO segment rose 16.27% to Rs 1,262.20 crore
(accounting for 15.72% of total PBIT). PBIT of IT segment fell 2.42%
to Rs 6,766.40 crore (accounting for 84.28% of total PBIT).
PBIT
margin of BPO segment fell from 19.88% to 17.55%. PBIT margin of IT
segment fell from 17.70% to 14.68%. Overall PBIT margin fell from
17.96% to 15.07%.
Operating profit margin has declined
from 17.96% to 14.62%, leading to 2.85% decline in operating profit to Rs
7,791.80 crore. Employee cost increased from 49.92% to 51.96%.
Other expenses rose from 32.12% to 33.41%. Software
technology development services cost fell from 15.58% to 15.01%.
Other
income fell 13.24% to Rs 965 crore. PBIDT fell 4.11% to Rs 8756.8
crore. Provision for interest rose 100.25% to Rs 325.6
crore. Loan funds rose to Rs 2,740.20 crore as of 31 March 2023 from
Rs 2,618.40 crore as of 31 March 2022. Inventories declined from Rs
40.50 crore as of 31 March 2022 to Rs 23.60 crore as of 31 March
2023. Sundry debtors were higher at Rs 8,142.40 crore as of 31 March
2023 compared to Rs 7,467.60 crore as of 31 March 2022. Cash and
bank balance rose to Rs 4,254.70 crore as of 31 March 2023 from Rs 3,974.50
crore as of 31 March 2022. Investments declined from Rs 4,883.80
crore as of 31 March 2022 to Rs 3,388.10 crore as of 31 March 2023.
PBDT
fell 6% to Rs 8431.2 crore. Provision for depreciation rose 28.70%
to Rs 1956.7 crore. Fixed assets declined from Rs 7,522.90 crore as
of 31 March 2022 to Rs 4,117.80 crore as of 31 March
2023. Intangible assets increased from Rs 7,425.80 crore to Rs
10,933.40 crore.
Profit
before tax down 13.09% to Rs 6,474.50 crore. Provision for tax was
expense of Rs 1588.5 crore, compared to Rs 1822 crore. Effective tax
rate was 24.65% compared to 24.45%.
Minority
interest decreased 59.84% to Rs 25.70 crore. Net profit attributable
to owners of the company decreased 13.20% to Rs 4,831.30 crore.
Equity
capital increased from Rs 438.80 crore as of 31 March 2022 to Rs 440.00 crore
as of 31 March 2023. Per share face Value remained same at Rs
5.00.
Promoters’
stake was 35.18% as of 31 March 2023 ,compared to 35.26% as of 31 March 2022
.
Cash
flow from operating activities increased to Rs 5,572.00 crore for year ended
March 2023 from Rs 5,285.30 crore for year ended March 2022. Cash
flow used in acquiring fixed assets during the year ended March 2023 stood at
Rs 1,015.20 crore, compared to Rs 958.40 crore during the year ended March
2022.
Management commentary:
Commenting on the performance Mr CP Gurnani MD & CEO 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.”
Mr Rohit Anand –CFO 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.”
| Tech Mahindra : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202306 | 202206 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 13,159.00 | 12,707.90 | 3.55 | 53,290.20 | 44,646.00 | 19.36 | | OPM (%) | 10.17 | 14.79 | -463 bps | 14.62 | 17.96 | -334 bps | | OP | 1,338.00 | 1,880.10 | -28.83 | 7,791.80 | 8,020.00 | -2.85 | | Other Inc. | 191.70 | 122.10 | 57.00 | 965.00 | 1,112.30 | -13.24 | | PBIDT | 1,529.70 | 2,002.20 | -23.60 | 8,756.80 | 9,132.30 | -4.11 | | Interest | 119.70 | 40.30 | 197.02 | 325.60 | 162.60 | 100.25 | | PBDT | 1,410.00 | 1,961.90 | -28.13 | 8,431.20 | 8,969.70 | -6.00 | | Depreciation | 446.6 | 476.7 | -6.31 | 1956.7 | 1520.4 | 28.70 | | PBT | 963.40 | 1,485.20 | -35.13 | 6474.5 | 7449.3 | -13.09 | | Share of Profit/(Loss) from Associates | 7.8 | 0.3 | 2,500.00 | -29 | 2.8 | PL | | PBT before EO | 971.2 | 1485.5 | -34.62 | 6445.5 | 7452.1 | -13.51 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 971.2 | 1485.5 | -34.62 | 6445.5 | 7452.1 | -13.51 | | Taxation | 267.6 | 338 | -20.83 | 1588.5 | 1822 | -12.82 | | PAT | 703.6 | 1147.5 | -38.68 | 4857 | 5630.1 | -13.73 | | Minority Interest (MI) | 11.1 | 15.9 | -30.19 | 25.7 | 64 | -59.84 | | Net profit | 692.5 | 1131.6 | -38.80 | 4831.3 | 5566.1 | -13.20 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 692.5 | 1131.6 | -38.80 | 4831.3 | 5566.1 | -13.20 | | EPS (Rs)* | 7.10 | 11.61 | -38.80 | 49.56 | 57.10 | -13.20 | | | * EPS is on current equity of Rs 487.37 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) | 202306 | 202206 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
|---|
| Sales | | BPO | 14.79 | 1,946.20 | 1,606.40 | 21.15 | 13.50 | 7,193.00 | 5,460.80 | 31.72 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | Telecom Service Provider | 0.00 | 0.00 | 0.00 | - | | Others | 0.00 | 0.00 | 0.00 | - | | IT | 85.21 | 11,212.80 | 11,101.50 | 1.00 | 86.50 | 46,097.20 | 39,185.20 | 17.64 | | Total Reported Sales | 100.00 | 13,159.00 | 12,707.90 | 3.55 | 100.00 | 53,290.20 | 44,646.00 | 19.36 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 13,159.00 | 12,707.90 | 3.55 | 100.00 | 53,290.20 | 44,646.00 | 19.36 | | PBIT | | BPO | 23.77 | 318.00 | 273.90 | 16.10 | 15.72 | 1,262.20 | 1,085.60 | 16.27 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | Telecom Service Provider | 0.00 | 0.00 | 0.00 | - | | Others | 0.00 | 0.00 | 0.00 | - | | IT | 76.23 | 1,020.00 | 1,606.20 | -36.50 | 84.28 | 6,766.40 | 6,934.40 | -2.42 | | Total PBIT | 100.00 | 1,338.00 | 1,880.10 | -28.83 | 100.00 | 8,028.60 | 8,020.00 | 0.11 | | Less : Interest | | 119.70 | 40.30 | 197.02 | | 325.60 | 162.60 | 100.25 | | Add: Other un-allcoable | | -247.10 | -354.30 | 30.26 | | -1,257.50 | -405.30 | -210.26 | | PBIT Margin(%) | | BPO | | 16.34 | 17.05 | -71.10 | | 17.55 | 19.88 | -233.23 | | Telecom Equipment Manufacturer | | 0.00 | 0.00 | 0.00 | | Telecom Service Provider | | 0.00 | 0.00 | 0.00 | | Others | | 0.00 | 0.00 | 0.00 | | IT | | 9.10 | 14.47 | -537.16 | | 14.68 | 17.70 | -301.79 | | PBT | 100.00 | 971.20 | 1,485.50 | -34.62 | 100.00 | 6,445.50 | 7,452.10 | -13.51 |
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