Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Q2 FY2025 Earnings Presentation
21 slides from Tech Mahindra's earnings presentation, Oct 19, 2024
Slide 1: Outcome of Board Meeting letter to exchanges
Tech Mahindra Limited Sharda Centre, Off Karve Road, Pune - 411004, Maharashtra, India Tel. +91 20 6601 8100 Fax. +91 20 2542 4466 techmahindra.com connect@techmahindra.com CIN L64200MH1986PLCO41370 19th October, 2024 To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers
Slide 2: Enclosed documents and company secretary sign-off
In this regard, please find enclosed the following documents prepared in compliance with the SEBI Listing Regulations: 1. Audited Consolidated and Standalone Financial Results for the second quarter and half year ended 30th September, 2024 and notes thereon together with the Unmodified Audit Reports
Slide 3: Earnings Presentation Q2 FY'25
+ > + > Earnings + + + + + + + + + + + + + + + + + + + + + + + + + + + > + > + > + + + + + + + + Presentation + + + + + + + + + + + + + + + + + + + Q2 FY’25 September 2024 Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 1
Slide 4: Q2 FY25 Snapshot
Q2 FY25 Snapshot $ 1,589 Mn 9.4% $ 157 Mn Revenue PAT Margin Free Cash flow 9.6% $ 603 Mn EBIT Margin Net New Deal Wins + + + + + + > > + + + + Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 2
Slide 5: Q2 FY25 Snapshot (YoY)
Q2 FY25 Snapshot All trends are YoY, except where specified FINANCIAL OPERATIONAL SEGMENT* GEOGRAPHY Revenue Headcount Americas IT 2.2% 154,273 1.8%% -2.0% (1.2% cc) ( up 3,669) EBIT % IT LTM attrition BPS Europe 9.6% 10.6% 13.3% 4.1% (up 490 bps) (down 80 bps) PAT % Utilization ROW 9.4% (incl. trai
Slide 6: Q2 FY25 Snapshot (QoQ)
Q2 FY25 Snapshot All trends are QoQ, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount Americas IT 1.9% 154,273 2.3% -0.7% (0.7% cc) (up 6,653) EBIT % IT LTM attrition BPS Europe 9.6% 10.6% 2.9% 4.6% (up 110 bps) (up 50 bps) PAT % Utilization ROW 9.4% (incl. trainees)
Slide 7: Vertical Performance Q2 FY25
Vertical Performance Q2 FY25 Banking, Financial Technology, Retail, Healthcare & VERTICALS Communications Manufacturing Services & Media & Transport Others Lifesciences Insurance Entertainment & Logistics % SHARE 33.4% 17.2% 15.8% 14.3% 7.9% 7.4% 4.0% % YoY -1.7% 0.6% 4.5% 2.4% 4.7% 4.5% 29.5% % QoQ
Slide 8: Management Commentary
Management Commentary “We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through
Slide 9: Deal-Win Performance
Deal-Win Performance Total TCV Q2 FY25: $ 603 Mn Opened a new logo with one of the largest Selected by a leading European CSP for an Strategic partnership with a Telco in US based Cards & Payments services Autonomous Operations Program, enabling Europe to collaborate on improving time provider for a
Slide 10: Strategic Highlights: AI
Strategic Highlights: AI TechM VerifAI Indus Launch with Partners Launch of TechM Xpert Market proposition for consulting Indus-Q for Edge in Qualcomm A powerful suite for enhancing lead verification & validation Snapdragon Summit business operations through AI- services Indus 2.0 in NVIDIA AI summi
Slide 11: Strategic Highlights: Brand Awareness & Perception
Strategic Highlights: Brand Awareness & Perception Analyst & Advisor Day, PM Modi's interaction with Metaverse Boston Enabler developed by Maker's Lab + + + Comprehensive end-to-end lifecycle 8 Gold medals - Brandon Hall Group™ A case study in our capabilities and Validation Solution for AI projects
Slide 12: Strategic Highlights: Brand Awareness & Perception
Strategic Highlights: Brand Awareness & Perception Global Chess League – A Digital Transformation Partner+ Innovation Partner Season Filled With Pride Award 2024 at Avasant Partner Summit Tech Mahindra at Dreamforce’24 Global Footprint Expansion – Latvia, Alabama and South Africa Company Confidentia
Slide 13: Other Highlights: Partnerships & Collaborations
Other Highlights PARTNERSHIPS & COLLABORATIONS Tech Mahindra and Google Cloud Tech Mahindra announced a Temenos signed an agreement with Platform announced a strategic collaboration with Microsoft to Tech Mahindra for Tech Mahindra to partnership to boost generative AI (gen modernize workplace exper
Slide 14: Other Highlights: Partnerships & New Launches
Other Highlights PARTNERSHIPS & NEW LAUNCHES Tech Mahindra and LivePerson Tech Mahindra announced the Tech Mahindra announced its announced a strategic partnership to expansion of its Business Processing association with the 45th Chess power AI-Driven Customer Experience in Services (BPS) business i
Slide 15: ESG & People Highlights
ESG & People Highlights STRENGTH & ATTRITION AWARDS – Won the 2024 Oracle Best in Class Innovation Partner Award for Apps Service Partners – Tech Mahindra’s Populii awarded Frost & Sullivan’s 2024 Global Employee strength Competitive Strategy Leadership Award for revolutionising 154,273 crowdsourcin
Slide 16: Management Commentary
Management Commentary This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cashflow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy the board has declared an interim div
Slide 17: Financial Snapshot Q2 FY25
Financial Snapshot Q2 FY25 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 1,555 1,559 1,589 149 444 153 414 132 349 102 73 59 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 14.1 25.8% 213 9.6 157 17.6% 9
Slide 18: Operational Snapshot Q2 FY25
Operational Snapshot Q2 FY25 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 150,604 154,273 147,620 86.1% 86.1% 86.3% 26.6% 11.4% 10.6% 10.1% 24.6% 23.7% Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+
Slide 19: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Hedge book $ 2,326 Mn Tax rate 26.6% Free cash flow $157 M Interim Dividend Rs. 15 per share USD/INR average exchange rate 83.80 + + + + DSO 94 days + + > > + + + + Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved.
Slide 20: Financial Summary Q2 FY25
Financial Summary Q2 FY25 in $ Mn Q2FY’25 QoQ YoY Revenue 1,589 1.9% 2.2% EBIT 153 15.6% 109.1% EBIT % 9.6% Other Income 62 258.8% 95.2% + + Miscellaneous + Interest Income 74 > > Exchange Gain/(Loss) (12) + + Impairment Costs - Profit Before Tax 204 44.8% 175.8% Provision for tax 54 Profit After Ta
Slide 21: Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved.
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + > > > + + + + + + + + + + + + + + + + + + + + + + Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 19