Tech Mahindra Limited · NSE:TECHM

Tech Mahindra — Q1 FY24 Earnings Presentation

14 slides from Tech Mahindra's earnings presentation, June 2023

  1. Slide 1: Earnings Presentation Q1 FY24

    Earnings Presentation Q1 FY24 June 2023 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 1

  2. Slide 2: Q1 FY24 Snapshot

    Q1 FY24 Snapshot $ 1,601 Mn 5.3% $ 106 Mn Revenue PAT Margin Free Cash flow 6.8% $ 359 Mn EBIT Margin Net New Deal Wins Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 2

  3. Slide 3: Q1 FY24 Snapshot

    Q1 FY24 Snapshot FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas -4.0% 148,297 -9.4% -0.5% (-4.2% cc) (-4,103) EBIT % IT LTM attrition Enterprise Europe -440 bps 12.8% -0.4% -6.7% (down 200 bps) PAT % Utilization IT ROW -290 bps (inc trainees) -4.9% -8.2% 87.2% (up 70 bps) FCF

  4. Slide 4: Management Commentary

    Management Commentary CP Gurnani CEO, Tech Mahindra Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and share

  5. Slide 5: Vertical Performance Q1 FY24

    Vertical Performance Q1 FY24 VERTICALS Communications, Manufacturing Banking, Technology Retail, Transport Others Media & Financial & Logistics Entertainment Services & Insurance % SHARE 37.8% 16.9% 16.1% 10.7% 7.9% 10.6% % QoQ -9.4% +1.8% -3.2% +0.1% -0.3% -0.1% % YoY -8.2% +8.6% -5.4% +8.0% -2.0%

  6. Slide 6: Deal-Win Performance

    Deal-Win Performance Total TCV Q1 FY24: $ 359 Mn Select Deals: Selected as a strategic Chosen by one of the Won a multiyear strategic partner by a large telecom largest tyre manufacturers deal from a leading operator in the US to in the world for its end-to- Networking OEM in America implement Cloud

  7. Slide 7: Strategic Highlights

    Strategic Highlights COLLABORATIONS GEN AI HIGHLIGHTS OTHER HIGHLIGHTS Tech Mahindra and IndoSat Tech Mahindra unveiled Generative AI Global Chess League, a joint venture launched a Center of Excellence studio under its amplifAI0->∞ suite of between FIDE and Tech Mahindra, (CoE) lab powered by Googl

  8. Slide 8: ESG & People Highlights

    ESG & People Highlights STRENGTH & ATTRITION AWARDS “Champions’ for Leading Practices in Diversity & Inclusion Initiatives & for Best POSH strategy - Our employee strength is at 148,297 People First HR Excellence Awards LTM attrition reduced to 12.8% from Ranked Number 1 amongst the top 25 IT 14.8%

  9. Slide 9: Management Commentary

    Management Commentary Rohit Anand CFO, Tech Mahindra This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on the profitability. We have taken swift and decisive actions to address these issues and improve our execution Company Confidential | Copyr

  10. Slide 10: Financial Snapshot Q1 FY24

    Financial Snapshot Q1 FY24 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 482 1,632 1,668 1,601 459 186 177 143 136 411 108 84 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 142 106 12.8 12.6 1,114 939 7

  11. Slide 11: Operational Snapshot Q1 FY24

    Operational Snapshot Q1 FY24 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 158,035 152,400 27.2% 27.3% 26.9% 148,297 86.5% 87.2% 22.2% 82.8% 14.8% 12.8% Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+

  12. Slide 12: Other Financial Highlights

    Other Financial Highlights CASH CONVERSION TREASURY OTHERS Hedge book at $ 2,702 Mn Tax rate at 27.6 % in Q1 FY24, Free cash flow at $ 106 Mn, compared to $ 2,335 Mn in Q4 compared to 26.2 % in Q4 FY23 FY23 FCF to PAT conversion: Q1 FY24: 126%, USD/INR Q1 FY24 average exchange rate at 82.20 DSO @ 98

  13. Slide 13: Financial Summary Q1 FY24

    Financial Summary Q1 FY24 in $ Mn Q1’24 QoQ YoY Revenue 1,601 -4.0% -1.9% EBIT 108 -41.7% -38.9% EBIT % 6.8% Other Income 23 -37.2% 48.8% Miscellaneous + Interest 18 Income Exchange Gain/(Loss) 5 Profit Before Tax 118 -36.2% -37.1% Provision for tax 33 Profit After Tax 84 -38.0% -41.1% PAT % 5.3% EP

  14. Slide 14: Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved.

    Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 14

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