Tech Mahindra Limited · NSE:TECHM

Tech Mahindra — Q3 FY22 Earnings Presentation

17 slides from Tech Mahindra's earnings presentation, February 2022

  1. Slide 1: Earnings Presentation Q3 FY22

    EARNINGS PRESENTATION Q3 FY22 February 2022 Copyright © 2020 Tech Mahindra. All rights reserved.

  2. Slide 2: Q3'22 Snapshot

    Q3’22 Snapshot $ 1533.5 mn 12.0% $ 123 Mn Revenue PAT Margin Free Cash flow 14.8% $ 704 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% 145,067 6.2% 6.6% (+3,874) IT LTM attrition Enterprise Europe EBIT % 40 bps 23.5% 2.7% 2.6% (up 2.5pp) PAT % Utilization (incl trainees) IT Services ROW 30 bps 84% 4.7% 1.2% (down 300 bps) FCF to PAT % Ac

  4. Slide 4: Management Commentary

    Management Commentary CP Gurnani CEO, Tech Mahindra Our people-first approach combined with sustained value creation this quarter reflects our commitment towards redefining possibilities and competencies in the new normal. We continue to strengthen our presence, deliver broad-based profitable growth

  5. Slide 5: Business Update

    Business Update  Another quarter of consistent large deal  5G Led Spending picking up wins  Chip-to-Cloud R&D trend in Auto,  Communications growth led by 5G,  Digital Engineering, Cloud, Tech  Manufacturing, Healthcare, Retail see Transformation key enabler strong growth Strategy Customers ES

  6. Slide 6: Vertical Performance: Q3'22

    Vertical Performance: Q3’22 Communications, Banking, Financial Retail, Transport VERTICALS Media & Manufacturing Technology Services & Others & Logistics Entertainment Insurance % SHARE 40.9% 15.8% 8.4% 15.4% 8.5% 10.9% % QoQ +6.2% +3.0% -1.9% -1.5% +14.3% +4.3% % YoY +18.0% +13.3% +17.0% +13.4% +23

  7. Slide 7: Net New Deal Wins

    Net New Deal Wins Enterprise, 478 CME, 226 ($ Mn) Q3’ 22 TCV: $ 704 Mn Chosen by a leading Selected by an Africa Selected by one of the Chosen by a global spirits digital printing company in power generation largest automotive & food company to build Europe to implement company, to effect companies

  8. Slide 8: Strategic Highlights

    Strategic Highlights COLLABORATIONS OTHER HIGHLIGHTS Tech Mahindra has entered into a strategic Tech Mahindra achieves Premier Consulting collaboration with Sovico group to drive digital Partner Status in the AWS Partner Network(APN). transformation & improve agility through technology Awarded for s

  9. Slide 9: People Updates

    People Updates Quarterly annualized attrition came down this quarter Hiring from Tier II cities & Nearshore centers will be a key focus area Tech Mahindra won two First Place (HR Technology / Community Impact categories) trophies at the SHRM HR Excellence Awards 2021 Recognized by People Business In

  10. Slide 10: ESG Focus: Sustainability

    ESG Focus: Sustainability Formulated Roadmap to become Initiated and approved the Participated in COP26 Carbon Neutral by 2030 & process of procuring Solar conclave, the 26th United achieve Net Zero before 2035 Captive Power Plant of 5 MW Nations Climate Change based on our science-based for Pune-Hi

  11. Slide 11: ESG Focus: Social

    ESG Focus: Social Tech Mahindra Foundation, in As part of the International Tech Mahindra started a new technical centre in Day of Persons with Foundation has served Ghaziabad, (UP) offering Disabilities, TMF organized the the nation through 572 specialization in the field of sixth edition of Saajhi

  12. Slide 12: Management Commentary

    Management Commentary Milind Kulkarni CFO, Tech Mahindra We continue to transform our operations and add new capabilities enabling us to grow faster while sustaining our profitability. Our focus on operational efficiencies and investments for the future will help us drive exponential value creation

  13. Slide 13: Financial Snapshot: Q3'22

    Financial Snapshot: Q3’22 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 1,533 223.4 228.1 1,473 466.3 461.3 208.6 181.0 183.8 430.9 177.7 1,309 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 14.9 15.1 1

  14. Slide 14: Operational Snapshot: Q3'22

    Operational Snapshot: Q3’22 HEADCOUNT UTILIZATION IT ATTRITION REVENUE MIX (including trainees) (LTM) (Onsite) 145,067 141,193 24% 63% 87% 87% 21% 61% 61% 84% 121,901 12% Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 1191 31.

  15. Slide 15: Other financial highlights

    Other financial highlights CASH CONVERSION TREASURY OTHERS  Free cash flow at $ 123 Mn,  Hedge book at $ 2.2Bn compared  Tax rate at 26.9% in Q3 FY22, conversion to PAT at 67% to $ 2.39 Bn in Q2 FY22 compared to 29.4% in Q2 FY22  DSO @ 101 days compared to 92  USD / INR Q3 FY22 average days in

  16. Slide 16: Financial Summary: Q3'22

    Financial Summary: Q3’22 in $ Mn Q3'22 QoQ YoY Revenue 1533.5 4.1% 17.2% EBIT 228.1 2.1% 9.4% EBIT % 14.8% Other Income 29.9 -21.5% 0.1% Miscellaneous + Interest Income 13 Exchange Gain/(Loss) 16.9 Profit Before Tax 253.3 -1.3% 8.8% Provision for tax 68.2 Profit After Tax 183.8 1.6% 3.5% PAT % 12.0%

  17. Slide 17: Copyright © 2020 Tech Mahindra. All rights reserved.

    Copyright © 2020 Tech Mahindra. All rights reserved.

Tech Mahindra — Q3 FY22 Earnings Presentation on 6ix