Slide 1: Earnings Presentation Q3FY23
Earnings Presentation Q3FY23 January 2023 Copyright © 2022 Tech Mahindra. All rights reserved. 1
Slide 2: Q3 FY23 Snapshot
Q3 FY23 Snapshot $ 1,668 Mn 9.4% $ 31 Mn Revenue PAT Margin Free Cash flow 12.0% $ 795 Mn EBIT Margin Net New Deal Wins Copyright © 2022 Tech Mahindra. All rights reserved. 2
Slide 3: Q3 FY23 Snapshot
Q3 FY23 Snapshot FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas 1.8% 157,068 +1.9% (0.4%) (+0.2% cc) (-6,844) EBIT % IT LTM attrition Enterprise Europe 60 bps 17.3% +1.8% +1.6% (down 230 bps) PAT % Utilization IT ROW 40 bps (inc trainees) +0.8% +6.7% 86.4% (up 150 bps) FCF to
Slide 4: Management Commentary
Management Commentary CP Gurnani CEO, Tech Mahindra “We are witnessing moderation in growth given the tough macro economic environment. We will continue to work with our customers to pre-empt their technological requirements and identify new demand drivers, especially for digital services” Copyright
Slide 5: Vertical Performance
Vertical Performance VERTICALS Communications, Banking, Financial Manufacturing Technology Retail, Transport Others Media & Services & & Logistics Entertainment Insurance % SHARE 39.8% 15.9% 15.7% 10.3% 8.5% 9.9% % QoQ +1.9% -0.5% 0.0% +3.3% +6.0% 3.4% % YoY +5.8% +12.0% +7.8% +32.2% +8.2% -0.8% Cop
Slide 6: Deal-Win Performance
Deal-Win Performance Total TCV Q3 FY23: $ 795 Mn Select Deals: Chosen as the Won a strategic deal Chosen by an Asian Won a large deal with strategic partner for with a large American statutory authority to an American end-to-end OSS multinational develop and maintain multinational media transformati
Slide 7: Strategic Highlights
Strategic Highlights COLLABORATIONS OTHER HIGHLIGHTS Tech Mahindra announced a strategic partnership Tech Mahindra launches Cloud BlazeTech, an integrated- with Altice Labs, an innovation center of Altice sector-agnostic platform to maximize business value for Group, to co-create, innovate, and join
Slide 8: People Highlights
People Highlights STRENGTH & AWARDS ATTRITION “Company with Great Managers” - ET Our employee strength is at Great Manager Awards 2022 157,068 “Champions” in the Most Inclusive Companies Index (MICI) in 2022 LTM attrition reduced to 17.3% from 19.6% last quarter. Won First Place for “People Manageme
Slide 9: ESG Highlights
ESG Highlights State Best Employer Award for Received ATF Awards 2022 for Retained leadership position in the Empowerment of Persons with Best Assistive Technology CSR in the Dow Jones Sustainability Disabilities by the Government of Initiative of the Year- Enablers Index 2022 in the “TSV IT service
Slide 10: Management Commentary
Management Commentary Rohit Anand CFO, Tech Mahindra “Our numbers reflect resilience as we continue to work on the expansion of operating margin. I am confident that our strategy of client centricity & agility combined with delivery led transformation will help us create value for our customers and
Slide 11: Financial Snapshot
Financial Snapshot REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 228 1,668 478 184 1,638 461 456 200 1,533 184 159 157 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 253 15.5 14.5 14.6 1,346 29% 26% 947
Slide 12: Operational Snapshot
Operational Snapshot HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 163,912 157,068 145,067 85% 86% 24% 27% 27% 84% 27% 20% 17% Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 31% 101 1,279
Slide 13: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Free cash flow at $ 31 Mn, Hedge book at $ 2,529 Mn Tax rate at 27.4 % in Q3 FY23, compared to $ 2,392 Mn in Q2 compared to 21.9 % in Q2 FY23 FCF to PAT conversion: FY23 Quarter: 20.0%, YTD: 77.5% USD / INR Q3 FY23 average DSO @ 98 days exch
Slide 14: Financial Summary
Financial Summary in $ Mn Q3’23 QoQ YoY Revenue 1,668 1.8% 8.8% EBIT 200 8.5% -12.5% EBIT % 12.0% Other Income 30 -17.4% 0.2% Miscellaneous + Interest Income 15 Exchange Gain/(Loss) 15 Profit Before Tax 215 4.5% -15.2% Provision for tax 59 Profit After Tax 157 -1.0% -14.4% PAT % 9.4% EPS (Basic) in