Slide 1: Earnings Presentation Q2 FY24
Earnings Presentation Q2 FY24 September 2023 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 1
Slide 2: Q2 FY24 Snapshot
Q2 FY24 Snapshot $ 1,555 Mn 3.8% $ 213 Mn Revenue PAT Margin Free Cash flow 4.7% $ 640 Mn EBIT Margin Net New Deal Wins Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 2
Slide 3: Q2 FY24 Snapshot
Q2 FY24 Snapshot FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas -2.8% 150,604 -4.9% 0.7% (-2.4% cc) (+2,307) EBIT % IT LTM attrition Enterprise Europe -200 bps 11.4% -1.6% -6.8% (down 140 bps) PAT % Utilization IT ROW -140 bps (incl trainees) -2.5% -6.4% 86.1% (down 100 bps)
Slide 4: Management Commentary
Management Commentary CP Gurnani CEO, Tech Mahindra The year is being characterized by a very challenging demand environment and prolonged macro uncertainties. We have doubled down on our strategy of working closely with our clients as they reprioritize their resources and help them simplify. As a r
Slide 5: Vertical Performance Q2 FY24
Vertical Performance Q2 FY24 Communications Banking, Financial Retail, Manufacturing VERTICALS , Media & Services & Technology Transport Others Entertainment Insurance & Logistics % SHARE 37.0% 17.8% 16.1% 11.0% 8.2% 10.0% % QoQ -4.9% 2.2% -3.0% -0.5% 0.7% -8.4% % YoY -11.5% 5.7% -6.3% 2.8% -4.6% -2
Slide 6: Deal-Win Performance
Deal-Win Performance Total TCV Q2 FY24: $ 640 Mn Select Deals: Selected by one of the Partnered with a leading EU Selected as a partner to largest US based global based Fintech to deliver transform the OSS stack for e-commerce giant to modern platforms for banks an EU based telco. Tech modernize the
Slide 7: Strategic Highlights
Strategic Highlights ORGANISATIONAL RESTRUCTURE KEY APPOINTMENTS ▪ Organization structure simplified and streamlined with key ▪ Tech Mahindra announced the appointment of Atul Soneja client markets to foster deeper client intimacy and as the Chief Operating Officer (COO) effective 7th August vertica
Slide 8: Strategic Highlights: Generative AI
Strategic Highlights: Generative AI v 50+ qualified 7+ AI & Advanced 50+ prebuilt 10000+ Associates trained opportunities Analytics Labs uses cases Generative AI at Tech Mahindra - EEE Paradigm Efficiency Effectiveness Experience Improved developer Enterprise Search |QA Conversational AI productivit
Slide 9: Other Highlights
Other Highlights COLLABORATIONS OTHER HIGHLIGHTS ▪ Tech Mahindra has partnered with IFS, the global cloud Tech Mahindra inaugurated a local innovation center in enterprise software company, making Tech Mahindra the Espoo, Finland. The new center will accommodate a exclusive distributor of IFS techno
Slide 10: ESG & People Highlights
ESG & People Highlights STRENGTH & ATTRITION AWARDS Won 10 Gold Awards for DEI, talent acquisition, talent management, human resources, L&D and Our employee strength is at 150,604 future of work at the Brandon Hall Group HCM Excellence Awards™ 2023 LTM attrition reduced to 11.4% Only Indian Company
Slide 11: Management Commentary
Management Commentary Rohit Anand CFO, Tech Mahindra We have taken actions to reduce the exposure to non-core areas of business. These actions will, over time, help us improve our financial performance and enable long term sustainable growth. A consistent dividend payout reinforces our commitment to
Slide 12: Financial Snapshot Q2 FY24
Financial Snapshot Q2 FY24 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 456 1,638 1,601 159 1,555 184 411 349 108 84 73 59 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 253 23.8% 14.5 213 939 14.6% 94
Slide 13: Operational Snapshot Q2 FY24
Operational Snapshot Q2 FY24 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX 163,912 (including trainees) (Onsite) 150,604 27.3% 26.9% 148,297 87.2% 86.1% 26.6% 84.9% 19.6% 12.8% 11.4% Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+
Slide 14: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Hedge book at $ 2,536 Mn Tax rate at 17.9 % in Q2 FY24, Free cash flow at $ 213 Mn compared to $ 2,702 Mn in Q1 compared to 27.6 % in Q1 FY24 FY24 USD/INR Q2 FY24 average exchange rate at 82.70 DSO @ 97 days Company Confidential | Copyright
Slide 15: Capital Allocation
Capital Allocation CAPITAL RETURN • Interim Dividend of Rs 12 per share • Payout Ratio for H1FY24 is 99% of PAT
Slide 16: Financial Summary Q2 FY24
Financial Summary Q2 FY24 in $ Mn Q2’24 QoQ YoY Revenue 1,555 -2.8% -5.1% EBIT 73 -32.6% -60.3% EBIT % 4.7% Other Income 32 36.6% -12.0% Miscellaneous + Interest Income 32 Exchange Gain/(Loss) 0 Impairment Costs 18 Profit Before Tax 74 -37.2% -63.9% Provision for tax 13 Profit After Tax 59 -29.3% -6
Slide 17: Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved.
Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 17