Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Q3 FY24 Earnings Presentation
17 slides from Tech Mahindra's earnings presentation, December 2023
Slide 1: Earnings Presentation Q3FY24
Earnings Presentation Q3FY24 December 2023 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 1
Slide 2: Q3 FY24 Snapshot
Q3 FY24 Snapshot $ 1,573 Mn 3.9% $ 228 Mn Revenue PAT Margin Free Cash flow 5.4% $ 381 Mn EBIT Margin Net New Deal Wins Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 2
Slide 3: Q3 FY24 Snapshot (QoQ)
Q3 FY24 Snapshot All trends are QoQ, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas 1.1% 146,250 -0.3% -1.5% (1.1 % cc) (-4,354) EBIT % IT LTM attrition Enterprise Europe 5.4% 10.3% 2.0% 2.0% (up 70 bps) (down 110 bps) PAT % Utilization IT ROW 3.9% (inc
Slide 4: Q3 FY24 Snapshot (YoY)
Q3 FY24 Snapshot All trends are YoY, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas -5.7% 146,250 -13.4% -1.6% (-5.4 % cc) (-10,818) EBIT % IT LTM attrition Enterprise Europe 5.4% 10.3% -0.6% -8.3% (down 660 bps) (down 700 bps) PAT % Utilization IT ROW
Slide 5: Management Commentary
Management Commentary Mohit Joshi CEO, Tech Mahindra “The quarter was a mixed outcome, with growth in the Manufacturing and Healthcare segments but muted spending in areas like Communications, BFSI, and Hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing in
Slide 6: Vertical Performance Q3 FY24
Vertical Performance Q3 FY24 Communications Banking, Financial Retail, Manufacturing VERTICALS , Media & Services & Technology Transport Others Entertainment Insurance & Logistics % SHARE 36.5% 18.1% 15.5% 10.5% 8.6% 10.7% % QoQ -0.3% 2.9% -2.0% -2.9% 6.4% 8.4% % YoY -13.4% 8.7% -7.8% -3.3% -4.2% 1.
Slide 7: Deal-Win Performance
Deal-Win Performance Total TCV Q3 FY24: $ 381 Mn Select Deals: Selected as a strategic Selected as a top strategic Selected as a prime services Selected by one of the partner by a prominent partner by Fortune 500 partner by a US based Telco largest banks in Asia for a North American insurer, for com
Slide 8: Key Appointments
Key Appointments ▪ Tech Mahindra announced the appointment of Richard Lobo as the Chief People Officer (CPO). Prior to this, he was the Executive Vice President and HR Head for Infosys Ltd. He has served as a director on the Boards of Infosys Consulting and Infosys China. ▪ Tech Mahindra announced t
Slide 9: Strategic Highlights: Generative AI
Strategic Highlights: Generative AI v 50+ 100+ 7+ 10,000 prebuilt qualified AI & Advanced Associates uses cases opportunities Analytics Labs trained “In April 2023, Tech Mahindra launched “Tech Mahindra, is taking a distinctive "I really like that there's a stronger the Generative AI Studio platform
Slide 10: Other Highlights
Other Highlights NEW LAUNCHES ▪ Tech Mahindra launched a new business unit Navixus , within Tech Mahindra BPS division. Navixus will combine Tech Mahindra BPS’ automation, analytics, and consulting with Eventus’ CX and transformation capabilities to offer a holistic digital transformation suit to cu
Slide 11: ESG & People Highlights
ESG & People Highlights STRENGTH & ATTRITION AWARDS Only Indian IT company to make it to Dow Jones Sustainability Indices 2023, part of the DJSI World Index for the 9th consecutive year. Our employee strength is at 146,250 Tech Mahindra was recognised as India's Most Sustainable Business of the Year
Slide 12: Management Commentary
Management Commentary Rohit Anand CFO, Tech Mahindra “This year has given us the opportunity to step back and review our portfolio. We are confident that these actions will help us correct our course and deliver value in the long term. We are encouraged by the robust cash conversions this year, and
Slide 13: Financial Snapshot Q3 FY24
Financial Snapshot Q3 FY24 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 200 157 1,668 478 1,555 1,573 377 349 73 84 59 61 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 228 26.0% 213 14.6 843 780 784 9
Slide 14: Operational Snapshot Q3 FY24
Operational Snapshot Q3 FY24 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 157,068 150,604 87.6% 146,250 86.4% 86.1% 17.3% 27.5% 26.6% 26.1% 11.4% 10.3% Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+
Slide 15: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Hedge book at $ 2,326 Mn Tax rate at 22.8% in Q3 FY24, Free cash flow at $ 228 Mn compared to $ 2,536 Mn in Q2 FY24 compared to 17.9% in Q2 FY24 USD/INR Q3 FY24 average exchange rate at 83.21 DSO @ 91 days Company Confidential | Copyright ©
Slide 16: Financial Summary Q3 FY24
Financial Summary Q3 FY24 in $ Mn Q3’24 QoQ YoY Revenue 1,573 1.1% -5.7% EBIT 84 15.5% -57.7% EBIT % 5.4% Other Income 11 -67.1% -64.9% Miscellaneous + Interest 16 Income Exchange Gain/(Loss) (5) Impairment Costs 0 Profit Before Tax 81 9.9% -62.1% Provision for tax 19 Profit After Tax 61 3.0% -61.0%
Slide 17: Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved.
Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 17