Tech Mahindra Limited · NSE:TECHM

Tech Mahindra — Q1 FY22 Earnings Presentation

19 slides from Tech Mahindra's earnings presentation, July 2021

  1. Slide 1: Earnings Presentation Q1 FY22

    EARNINGS PRESENTATION Q1 FY22 July 2021 Copyright © 2020 Tech Mahindra. All rights reserved.

  2. Slide 2: Q1'22 Snapshot

    Q1’22 Snapshot $ 1.38 Bn 13.3% $ 172 Mn Revenue PAT Margin Free Cash flow 15.2% $ 815 Mn EBIT Margin Net New Deal Wins 2 Copyright © 2020 Tech Mahindra. All rights reserved.

  3. Slide 3: Business Highlights

    Business Highlights FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas 4.1% 126,263 3.2% 6.8% (+5209) IT LTM attrition Enterprise Europe EBIT % 130 bps 17.2% 4.7% 6.6% (up 3.9 pp) PAT % Utilization (incl trainees) IT Services ROW 220 bps 88.0% 3.2% -2.7% (60 bps) FCF to PAT % Act

  4. Slide 4: Management Commentary

    Management Commentary CP Gurnani CEO, Tech Mahindra 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

  5. Slide 5: Business Update

    Business Update  Large Deal traction continuing with  Engineering, network modernisation largest Healthcare & BPS deal Capex spends back  Communications back on strong  Enterprise Engineering & product growth trajectory Development with hyperscalers  Manufacturing, Hi-tech driving  Cloud, data

  6. Slide 6: Vertical Performance: Q1'22

    Vertical Performance: Q1’22 Communications, Banking, financial Retail, transport VERTICALS media & Manufacturing Technology services & Others & logistics entertainment insurance % SHARE 40.0% 16.5% 8.8% 16.4% 7.7% 10.6% % QoQ +3.2% +4.5% +8.1% +3.7% +3.2% +4.8% % YoY +12.6% +12.2% +22.7% +19.7% +16.

  7. Slide 7: Net New Deal Wins

    Net New Deal Wins Enterprise, 463 CME, 352 ($ Mn) Q1’ 22 TCV: $ 815 Mn Won a deal with a leading Engaged by one of the Won a strategic digital Chosen by a Tier 1 US UK telecom company for largest private healthcare assurance deal with an Telco in the data and end to end customer systems in US as a A

  8. Slide 8: Strategic Highlights

    Strategic Highlights COLLABORATIONS SOLUTIONS Announced a partnership with the International Launched ServiceNow Business Unit to Chess Federation for creating the Global accelerate digital transformation for customers Chess League together. The competition will be globally, focused on delivering in

  9. Slide 9: People Updates

    People Updates Won the ‘Golden Peacock HR Excellence Award’ for the year 2020 in the IT sector Launched the Harvard Manager Mentor (HMM) SPARK platform giving associates access to 21,000+ learning assets Resolve to Rise employee engagement campaign helped associates rally in response to the second w

  10. Slide 10: ESG Focus: Sustainability

    ESG Focus: Sustainability Joined 1.5°C Supply Roadmap to become Increased Renewable Only Indian company on Chain Leaders by carbon neutral by Energy from 1.77% (in the CLEAN Exponential Roadmap 2030 based on our baseline year FY16) to CARBON200 list for Initiative (ERI) to reduce science-based targe

  11. Slide 11: ESG Focus: Social

    ESG Focus: Social Tech Mahindra Initiated vaccination Tech Mahindra Tech Mahindra Foundation Foundation distributed through its 549 COVID Foundation has touched drives across all the close to 1,162 laptops relief programs reached over 25 lakh lives locations to complete both doses of and tablets to

  12. Slide 12: ESG Focus: Launched Integrated Annual Report

    ESG Focus: Launched Integrated Annual Report Link to the IAR: https://insights.techmahindra.com/investors/annual-report-20-21.pdf Copyright © 2020 Tech Mahindra. All rights reserved.

  13. Slide 13: Management Commentary

    Management Commentary Milind Kulkarni CFO, Tech Mahindra 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 c

  14. Slide 14: Financial Snapshot: Q1'22

    Financial Snapshot: Q1’22 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 448.2 219.0 183.2 1,384 438.1 209.3 1,330 147.7 128.8 1,207 344.1 121.6 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % 316.7 * ($ Mn) 15.

  15. Slide 15: Operational Snapshot: Q1'22

    Operational Snapshot: Q1’22 HEADCOUNT UTILIZATION IT ATTRITION REVENUE MIX (including trainees) (LTM) (Onsite) 126,263 88% 64.1% 123,416 121,054 87% 17% 62.8% 62.4% 17% 82% 13% Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 10

  16. Slide 16: Other financial highlights

    Other financial highlights CASH CONVERSION TREASURY OTHERS  Free cash flow at $ 172 Mn,  Hedge book at $ 2.22 Bn  Tax rate at 23.9% in Q1 FY22, conversion to PAT at 94 % compared to $ 2.01 Bn in Q4 FY21 compared to 32.4% in Q4 FY21 because of one-timers.  DSO @ 93 days compared to 92  USD / INR

  17. Slide 17: Capital Allocation

    Capital Allocation MERGERS & ACQUISITIONS • Tech Mahindra to acquire Brainscale Inc. for a consideration of upto $ 28.8 Mn including earnouts. Brainscale is a Cloud focused asset having expertise in Cloud Consulting, Enablement, Application Development and Data Analytics. • The acquisition will bols

  18. Slide 18: Financial Summary: Q1'22

    Financial Summary: Q1’22 in $ Mn Q1'22 QoQ YoY Revenue 1383.6 4.1% 14.6% EBIT 209.3 -4.4% 72.2% EBIT % 15.2% Other Income 38.8 776.2% -29.5% Miscellaneous + Interest Income 24.3 Exchange Gain/(Loss) 14.5 Profit Before Tax 243.0 15.2% 42.9% Provision for tax 58.1 Profit After Tax 183.2 24.1% 42.2% PA

  19. Slide 19: Copyright © 2020 Tech Mahindra. All rights reserved.

    Copyright © 2020 Tech Mahindra. All rights reserved.

Tech Mahindra — Q1 FY22 Earnings Presentation on 6ix