Tech Mahindra Limited · NSE:TECHM

Tech Mahindra — Q4 FY21 Earnings Presentation

24 slides from Tech Mahindra's earnings presentation, April 2021

  1. Slide 1: Earnings Presentation Q4 FY21

    EARNINGS PRESENTATION Q4 FY21 April 2021 Copyright © 2020 Tech Mahindra. All rights reserved.

  2. Slide 2: Q4'21 Snapshot

    Q4’21 Snapshot $ 1.33 Bn 11.1% $ 187 Mn Revenue PAT Margin Free Cash flow 16.5% $ 1.04 Bn 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 Communications Americas 1.6% 121,054 1.4% 1.3% (-847) IT LTM attrition Enterprise Europe EBIT % 60 bps 13.3% 1.8% 2.0% (up 1.3 pp) PAT % Utilization (incl trainees) IT Services ROW 250 bps 87.4% 1.7% 6.2% (40 bps) FCF to P

  4. Slide 4: FY21 Snapshot

    FY21 Snapshot $ 5.11 Bn 11.7% $ 965 Mn Revenue PAT margin Free Cash flow 14.2% $ 2.2 Bn EBIT Margin Net New Deal Wins 4 Copyright © 2020 Tech Mahindra. All rights reserved.

  5. Slide 5: Business Highlights

    Business Highlights FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount Communications Americas 1.4% 121,054 6.0% 2.6% (-4182) IT LTM attrition Enterprise Europe EBIT % 260 bps 13.3% 1.9% 4.9% (down 5.8 pp) PAT % Utilization (incl trainees) IT Services ROW 80 bps 85.4% 2.2% 4.8% (310 bps) FCF

  6. Slide 6: Management Commentary

    Management Commentary CP Gurnani CEO, Tech Mahindra Our continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter. We are witnessing a strong demand acceleration and are committed towards delivering a next-level human-centered experience of the fut

  7. Slide 7: Business Update

    Business Update  Human Centered Experience through Nxt.Now  Continued acceleration towards Cloud, digital transformation, AI and Security  Large Deal conversions accelerating  Engagements with Hyperscalers, SaaS  Focus verticals - Manufacturing, & disruptive OEMs BFSI, Comms with steady growth

  8. Slide 8: Vertical Performance: Q4'21

    Vertical Performance: Q4’21 Technology, Banking, financial Retail, transport VERTICALS Communications Manufacturing media & services & Others & logistics entertainment insurance % SHARE 39.6% 16.3% 9.3% 16.5% 7.5% 10.8% % QoQ +1.4% +1.9% +0.5% +4.9% -3.2% +1.7% % YoY -0.2% -5.2% +27.8% +10.3% +6.2%

  9. Slide 9: Vertical Performance: FY'21

    Vertical Performance: FY’21 Technology, Banking, financial Retail, transport VERTICALS Communications Manufacturing media & services & Others & logistics entertainment insurance % SHARE 39.7% 16.4% 9.4% 16.2% 7.6% 10.9% % YoY -6.0% -10.6% +20.0% +17.5% +7.6% -11.4% 9 Copyright © 2020 Tech Mahindra.

  10. Slide 10: Net New Deal Wins

    Net New Deal Wins Enterprise, 525 Communications, 518 ($ Mn) Q4’ 21 TCV: $ 1,043 Mn Enterprise, 1275 Communications, 935 ($ Mn) FY21 TCV: $ 2,210 Mn Won a digital Chosen by a European Won a deal with Global Engaged by one of the transformation deal headquartered Food & leading Hyperscaler leading Am

  11. Slide 11: Strategic Highlights

    Strategic Highlights COLLABORATIONS SOLUTIONS & RECOGNITIONS Tech Mahindra and Celonis, the global leader in launched ‘CLOUDEFENDER’ – a new cloud- Execution Management Systems (EMS) have based attack mitigation service, powered by launched frictionless contact center BPO Radware, a leading provider

  12. Slide 12: People Updates

    People Updates TechM has been declared as ‘Dream Company to work for’ by World HRD Congress. Emerged Winners for Learning Technology and Technology in HR categories at the BusinessWorld HR Excellence Awards 2021. TechM to cover Vaccination Cost for all employees and families, Also launched dedicated

  13. Slide 13: ESG Focus: Sustainability

    ESG Focus: Sustainability Awarded Gold rating Received the Bronze Amongst the ‘2021 Included in the Carbon with 94 percentile by Class distinction and Global 100 Most Disclosure Project (CDP) EcoVadis. included in the 'S&P Sustainable Supplier Engagement Global 2021 edition of Corporations’ by Leade

  14. Slide 14: ESG Focus: Social

    ESG Focus: Social Tech Mahindra CII Award for CSR & Distributed close to 400 Tech Mahindra Foundation Foundation has tabs to children with through its digital teacher COVID Relief touched over 20 lakh Initiatives for 2020- disabilities in its training initiatives lives through 355 2021.. ARISE+ part

  15. Slide 15: Management Commentary

    Management Commentary Milind Kulkarni CFO, Tech Mahindra We have witnessed substantial margin improvement and cash flow generation this year. Our focus on delivery transformation will continue, as we increasingly witness a structural shift towards digital to adapt to the new normal. We are positione

  16. Slide 16: Financial Snapshot: Q4'21

    Financial Snapshot: Q4’21 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 1,330 448 219 178 1,295 1,309 431 209 148 380 109 128 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 14.9 1780.9 1625.5 27.6% 12.3

  17. Slide 17: Operational Snapshot: Q4'21

    Operational Snapshot: Q4’21 HEADCOUNT UTILIZATION ATTRITION REVENUE MIX (including trainees) (Onsite) 125,236 87% 87% 19% 65.2% 121,901 121,054 62.7% 62.8% 83% 13% 12% Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 ACTIVE CLIENTS TOP 10% CLIENTS 50 Mn+ CLIENTS DSO 112 997 10

  18. Slide 18: Financial Snapshot: FY21

    Financial Snapshot: FY21 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 5,182 729 5,111 598 1,621 567 1,528 600 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 50.2 965.4 1,780.9 24.1% 22.6% 45.9 1,164.3 522.6 FY20 FY21 FY20 FY21 FY20 F

  19. Slide 19: Operational Snapshot: FY21

    Operational Snapshot: FY21 HEADCOUNT UTILIZATION ATTRITION REVENUE MIX (including trainees) (Onsite) 125,236 19% 65.3% 63.2% 121,054 85% 82% 13% FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 ACTIVE CLIENTS TOP 10% CLIENTS 50 Mn+ CLIENTS DSO 112 1007 31.1% 22 21 973 30.8% 92 FY20 FY21 FY20 FY21 FY20 FY21 F

  20. Slide 20: Other financial highlights

    Other financial highlights CASH CONVERSION TREASURY OTHERS  Free cash flow at $ 187 Mn,  Hedge book at $ 2.01 Bn  Tax rate at 32.4% in Q4 FY21, conversion to PAT at 127%. compared to $ 2.17 Bn in Q3 compared to 24.8% in Q3 FY21 FY21. because of one-offs.  FY21 FCF at $ 965 Mn, highest every FCF

  21. Slide 21: Capital Allocation

    Capital Allocation CAPITAL RETURN MERGERS & ACQUISITIONS • Announced Final Dividend of Rs 15/ Share and • Tech Mahindra acquires 70% stake in Perigord Special Dividend of Rs 15/ Share. Asset Holdings Ltd to augment expertise in the global pharmaceutical, healthcare and life • Total Dividend (Final a

  22. Slide 22: Financial Summary: Q4'21

    Financial Summary: Q4’21 in $ Mn Q4 FY 21 QoQ YoY Revenue 1329.6 1.6% 2.7% EBIT 219.0 5.0% 70.8% EBIT % 16.5% Other Income 4.4 -85.2% -88.4% Miscellaneous + Interest Income 13.0 Exchange Gain/(Loss) (8.6) Profit Before Tax 210.8 -9.4% 61.4% Provision for tax 68.3 Profit After Tax 147.7 -16.9% 35.5%

  23. Slide 23: Financial Summary: FY21

    Financial Summary: FY21 in $ Mn FY 21 YoY Revenue 5,111.1 -1.4% EBIT 729.0 21.5% EBIT % 14.3% Other Income 105.0 -37.3% Miscellaneous + Interest Income 92.4 Exchange Gain/(Loss) 12.6 Profit Before Tax 803.8 13.0% Provision for tax 216.2 Profit After Tax 597.8 5.5% PAT % 11.7% EPS (Basic) in Rs 50.64

  24. Slide 24: Copyright © 2020 Tech Mahindra. All rights reserved.

    Copyright © 2020 Tech Mahindra. All rights reserved.

Tech Mahindra — Q4 FY21 Earnings Presentation on 6ix