Tech Mahindra Limited · NSE:TECHM

Tech Mahindra — Q1 FY21 Earnings Presentation

17 slides from Tech Mahindra's earnings presentation, July 2020

  1. Slide 1: Investor Presentation Q1 FY21

    INVESTOR PRESENTATION Q1 FY21 JULY 2020 Copyright © 2020 Tech Mahindra. All rights reserved.

  2. Slide 2: Q1'21 Snapshot

    Q1’21 Snapshot $ 1.21 Bn 10.7% $ 317 Mn Revenue PAT margin Free Cash flow 10.1% $ 290 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 Communications Americas 6.3% 123,416 8.2% 3.5% (cc) (1,820) (cc) IT LTM attrition Enterprise Europe EBIT % 17% 5.1% 9.1% 10 bps (2 pp) (cc) PAT % Utilization (incl trainees) IT Services ROW 220 bps 82% 6.1% (1 pp) 10.1% FC

  4. Slide 4: Management Commentary

    Management Commentary CP Gurnani CEO, Tech Mahindra Our customer centric approach and continued focus on keeping our associates safe and connected has helped us to navigate through these challenging times successfully. We are witnessing a wave of new age technologies being adopted by the customers a

  5. Slide 5: COVID-19 Response

    COVID-19 Response  Large scale migration to Cloud  95% Work from Home  Redefine e-commerce strategy  Partial re-opening of offices, ~5% staff  Secure remote working, while in office investing in Safe Workplace solutions  #Wellnessfirst  Re-architect global supply chains Employees Customers Co

  6. Slide 6: Vertical Performance

    Vertical Performance Technology, Banking, financial Retail, transport VERTICALS Communications Manufacturing media & services & Others & logistics entertainment insurance % SHARE 40.0% 16.8% 9.0% 15.7% 7.3% 11.% % QoQ -8.6% -11.1% +13.1% -4.4% -6.2% -9.5% % YoY -7.9% -16.0% +14.2% +19.1% +13.9% -9.6

  7. Slide 7: Net New Deal Wins

    Net New Deal Wins Enterprise, 185 Communications, 105 ($ Mn) TCV: $ 290 Mn Engaged by one of the Selected by a leading Won a deal with a new Engaged by a leading largest health care North American security & age Electric Vehicle Communications provider in US as a VPN solution provider to Manufacture

  8. Slide 8: Strategic Highlights

    Strategic Highlights COLLABORATIONS SOLUTIONS LAUNCHED Collaborated with ChampTrax Technologies, a Launched mPAC 3.0 (Managed Platform for Canadian sports startup, to develop a solution to Adaptive Cloud), next-generation cloud management create stadium like-experience at home for global platform fo

  9. Slide 9: People Updates

    People Updates Tech Mahindra was • India's Best Companies to Work For – 2020 – Ranked 21 recognized by the • Best in Mega Employer (Organizations Great Place to with more than 50,000 Employees) Work®️ Institute in • Best Companies in Career Management the following categories Copyright © 2020 Tech M

  10. Slide 10: ESG Focus: Sustainability

    ESG Focus: Sustainability Recognised as a Signatory to the Signed a joint Externally audited Leader on ESG issues 1.5°C Commitment declaration with all ESG aspects of the by Sustainalytics, with Letter to set science- UN Global organization. an ESG rating of 99 based emissions Compact on aligning pe

  11. Slide 11: ESG Focus: Social

    ESG Focus: Social COVID-19 RELIEF EMPLOYABILITY GLOBAL PROGRAMS • Food and essentials to • E-Learning continues for • Contributed to UNICEF’s 62,288 individuals. more than 3,600 student “Flush the Virus”, with a • 44,600 cooked meals. beneficiaries across all sanitization drive. locations. • Over 25

  12. Slide 12: Management Commentary

    Management Commentary Manoj Bhat CFO, Tech Mahindra Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimization. Cash conversion has been strong, while we aim to improve profitability margins as demand normalizes. 12 Copyright ©

  13. Slide 13: Financial Snapshot

    Financial Snapshot REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBITDA ($ Mn) PAT ($ Mn) 1,295 380.4 190.0 138.7 128.8 182.7 109.0 1,247 359.1 172.4 1,207 344.1 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 316.7 10.9 11.0 1378.4 9

  14. Slide 14: Operational Snapshot

    Operational Snapshot HEADCOUNT UTILIZATION ATTRITION REVENUE MIX (including trainees) (Onsite) 125,773 21% 65.3% 65.2% 125,236 83% 82% 19% 80% 64.1% 123,416 17% Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 ACTIVE CLIENTS TOP 10% CLIENTS 50 Mn+ CLIENTS DSO 981 31.1% 112 973

  15. Slide 15: Other financial highlights

    Other financial highlights CASH CONVERSION TREASURY OTHERS  Free cash flow to PAT conversion  Hedge book at $ 2.3 Bn compared  Tax rate at 25.5% in Q1 FY21 vs at 246 %. to $ 2.5 Bn in Q4 FY20. 24.8% in Q4 FY20.  Highest quarterly FCF generated till date, aided by strong collections and tax refun

  16. Slide 16: Financial Summary

    Financial Summary in $ Mn Q1 FY 21 QoQ YoY Revenue 1,207.5 -6.7% -3.2% EBIT 121.6 -5.2% -15.4% EBIT % 10.1% Other Income 55.1 44.0% 11.8% Miscellaneous + Interest Income 43.7 Exchange Gain/Loss 11.3 Profit Before Tax 170.0 30.1% -8.2% Provision for tax 43.4 Profit After Tax 128.8 18.2% -7.1% PAT % 1

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

    Copyright © 2020 Tech Mahindra. All rights reserved.

Tech Mahindra — Q1 FY21 Earnings Presentation on 6ix