Slide 1: Earnings Presentation Q2 FY22
EARNINGS PRESENTATION Q2 FY22 October 2021 Copyright © 2020 Tech Mahindra. All rights reserved.
Slide 2: Q2'22 Snapshot
Q2’22 Snapshot $ 1.47 Bn 12.3% $ 188 Mn Revenue PAT Margin Free Cash flow 15.2% $ 750 Mn EBIT Margin Net New Deal Wins 2 Copyright © 2020 Tech Mahindra. All rights reserved.
Slide 3: Business Highlights
Business Highlights FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas 6.4% 141,193 6.7% 8.9% (+14,930) IT LTM attrition Enterprise Europe EBIT % 0% 21.2% 6.3% 1.6% (up 4pp) PAT % Utilization (incl trainees) IT Services ROW 100 bps 86.9% 5.9% 7.0% (down 110 bps) FCF to PAT % Acti
Slide 4: Management Commentary
Management Commentary CP Gurnani CEO, Tech Mahindra As we record our highest sequential growth in a decade, we remain committed to deliver long-term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities th
Slide 5: Business Update
Business Update Continuing pace of large deal wins 5G Led Spending picking up Communications growth led by 5G Growth led by Digital Engineering, Cloud, D&A BFSI, Hi-tech, HLS continue to Tech Transformation key enabler grow at strong pace Strategy Customers ESG Operations Third party K
Slide 6: Vertical Performance: Q2'22
Vertical Performance: Q2’22 Communications, Banking, financial Retail, transport VERTICALS media & Manufacturing Technology services & Others & logistics entertainment insurance % SHARE 40.1% 16.0% 9.0% 16.3% 7.8% 10.9% % QoQ +6.7% +3.0% +8.4% +6.0% +7.7% +9.1% % YoY +16.1% +14.1% +16.6% +15.9% +17.
Slide 7: Net New Deal Wins
Net New Deal Wins Enterprise, 495 CME, 255 ($ Mn) Q2’ 22 TCV: $ 750 Mn Won a multi-year strategic Chosen by a US telco to Selected by an Asian Chosen by a top Fortune deal with a fortune 500 be a part of its technology giant for multi 100 company in retail company in personal care transformation jou
Slide 8: Strategic Highlights
Strategic Highlights COLLABORATIONS OTHER HIGHLIGHTS Tech Mahindra has partnered with Loughborough Tech Mahindra has launched a dedicated Google University, the world’s best university for sport, to Cloud Business Unit to accelerate cloud drive innovation in the sports industry via adoption for ente
Slide 9: People Updates
People Updates 14,900+ associates hired, highest ever for the company in a single quarter Won the ‘Stevie Awards for Great Employer’ and ‘Brandon Hall HCM Excellence Awards’ for the year 2021 Mental wellbeing of associates & employee engagement through virtual connects was a priority during & post t
Slide 10: ESG Focus: Sustainability
ESG Focus: Sustainability Recognized among the top Signed G20 Business letter Submitted Science Based 15 companies for strengthening NDCs targets aligned to 1.5 degree Sustainability and CSR in (Nationally Determined Celsius for verification, Futurescape 8th Contributions) in line with validation, a
Slide 11: ESG Focus: Social
ESG Focus: Social Tech Mahindra Helped install 10 oxygen Launched new initiative Foundation has served plants & donated 20 fully “YuWaaz” a forum to the nation through 571 equipped ambulances to 20 integrate youth’s COVID relief projects till charitable hospitals catering perspective into re- date.
Slide 12: Management Commentary
Management Commentary Milind Kulkarni CFO, Tech Mahindra Our strong execution has ensured that we maintain our profitability margins while accelerating growth momentum. We remain committed on the operational excellence journey we have boarded and continue to create value to shareholders through effi
Slide 13: Financial Snapshot: Q2'22
Financial Snapshot: Q2’22 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 1,473 466.3 223.4 183.2 181.0 438.1 209.3 1,384 143.7 398.1 179.8 1,265 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 15.3 15.1 1
Slide 14: Operational Snapshot: Q2'22
Operational Snapshot: Q2’22 HEADCOUNT UTILIZATION IT ATTRITION REVENUE MIX (including trainees) (LTM) (Onsite) 141,193 21% 88% 87% 63.0% 62.4% 126,263 85% 17% 61.1% 124,258 14% Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 98
Slide 15: Other financial highlights
Other financial highlights CASH CONVERSION TREASURY OTHERS Free cash flow at $ 188 Mn, Hedge book at $ 2.39 Bn Tax rate at 29.4% in Q2 FY22, conversion to PAT at 104% compared to $ 2.22 Bn in Q1 FY22 compared to 23.9% in Q1 FY22 DSO @ 92 days compared to 93 USD / INR Q2 FY22 average days i
Slide 16: Capital Allocation
Capital Allocation CAPITAL RETURN MERGERS & ACQUISITIONS • Announced special dividend of ₹ 15 / Share • Tech Mahindra to acquire Lodestone, a leading digital engineering quality assurance provider for new age digital companies. • The acquisition will bolster Tech Mahindra’s digital engineering capab
Slide 17: Financial Summary: Q2'22
Financial Summary: Q2’22 in $ Mn Q2'22 QoQ YoY Revenue 1472.6 6.4% 16.4% EBIT 223.4 6.7% 24.2% EBIT % 15.2% Other Income 38.1 -2.0% 143.2% Miscellaneous + Interest Income 21.8 Exchange Gain/(Loss) 16.3 Profit Before Tax 256.6 5.6% 34.9% Provision for tax 75.3 Profit After Tax 181.0 -1.2% 26.0% PAT %
Slide 18: Copyright © 2020 Tech Mahindra. All rights reserved.
Copyright © 2020 Tech Mahindra. All rights reserved.