Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Q1 FY23 Earnings Presentation
16 slides from Tech Mahindra's earnings presentation, July 2022
Slide 1: Earnings Presentation Q1 FY23
EARNINGS PRESENTATION Q1 FY23 July 2022 Copyright © 2020 Tech Mahindra. All rights reserved.
Slide 2: Q1'23 Snapshot
Q1’23 Snapshot $ 1,632 Mn 8.9% $ 72 Mn Revenue PAT Margin Free Cash flow 11.0% $ 802 Mn EBIT Margin Net New Deal Wins 2 Copyright © 2020 Tech Mahindra. All rights reserved.
Slide 3: Business Highlights Q1 FY23
Business Highlights Q1 FY23 FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas 1.5% 158,035 1.0% 4.4% (3.5% cc) (+6,862) (3.9% cc) (+4.0% cc) IT LTM attrition Enterprise Europe EBIT % 220 bps 22.2% 1.9% 1.9% (down 130 bps) (3.2% cc) (+3.9% cc) PAT % Utilization (incl trainees) IT
Slide 4: Management Commentary
Management Commentary CP Gurnani CEO, Tech Mahindra We are starting this fiscal with a renewed commitment towards delivering consistent organic growth. We remain resilient and watchful given the dynamic global macro- economic environment and will continue to invest in new and emerging technologies t
Slide 5: Business Update Q1FY23
Business Update Q1FY23 ✓ 5G, Cloud AI-Ops continue to drive CME ✓ Digital Product, Cloud Native Engg. ✓ Focussed Insurance business launched are major trends in Insurance ✓ AI/ML, data engineering and ✓ Manufacturing @ $1Bn run-rate experiences continues to drive global transformation demand Strateg
Slide 6: Vertical Performance: Q1'23
Vertical Performance: Q1’23 Communications, Banking, Financial Retail, Transport VERTICALS Media & Services & Manufacturing Technology Others & Logistics Entertainment Insurance % SHARE 40.4% 16.7% 15.3% 9.7% 7.9% 10.0% % QoQ +1.0% -2.9% +3.9% +6.4% +5.5% +0.2% % YoY +19.1% +20.0% +8.9% +30.3% +21.2
Slide 7: Net New Deal Wins $802Mn
Net New Deal Wins Total TCV Q1 FY23 : $ 802Mn Select Deals: Selected by a leading Chosen by a leading Selected by a leading Chosen by a telecom security services financial institution in Insurance Carrier in the giant in the US to jointly company in Europe to Europe to digitally US for Cloud scale i
Slide 8: Strategic Highlights
Strategic Highlights COLLABORATIONS OTHER HIGHLIGHTS Tech Mahindra launched AmplifAI- a suite of AI offerings Makers Lab, R&D arm of Tech Mahindra, launched first- containing our platforms GAiA, an AI & ML Ops platform; of-its-kind, ‘Meta Village’, a digital twin of Pargaon in Sayint, an advanced sp
Slide 9: People Updates
People Updates Tech Mahindra won the Tech Mahindra has won the Improved Gender Golden Peacock for HR “Most Preferred Workplace diversity from 34.1% Excellence for the 3rd 2022-23” at the India Today to 34.4% year in a row Summit Copyright © 2021 Tech Mahindra. All rights reserved.
Slide 10: ESG Focus: Sustainability
ESG Focus: Sustainability Published the Integrated Annual Report Ranked 2nd amongst the Top 35 for FY22 companies in Businessworld Ranked second with a sustainability Recorded healthy Sustainability savings: India's Most Sustainable score of 46, in the Capri Global Companies 2022 in this year’s ►Inc
Slide 11: ESG Focus: Social
ESG Focus: Social Students from economically A satellite Transgender Centre Pune Academy conducted challenged backgrounds studying in for beauty and wellness is BLS upskilling workshop our SMART Academy for recently inaugurated in Damana, in 5 hospitals including a Healthcare, Pune received Bhubanes
Slide 12: Management Commentary
Management Commentary Rohit Anand CFO, Tech Mahindra Delivery transformation, cost optimization and cash conversion will be key focus areas, as we continue to offset the strong supply side headwinds in the market. We aim to expand our profitability through operational excellence and improved operati
Slide 13: Financial Snapshot: Q1'23
Financial Snapshot: Q1’23 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 198 1,632 471 209 211 183 1,608 459 438 177 1,384 143 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 16.9 15.3 172 1,818 12.8 26.9
Slide 14: Operational Snapshot: Q1'23
Operational Snapshot: Q1’23 HEADCOUNT UTILIZATION IT ATTRITION HEADCOUNT MIX (including trainees) (LTM) (Onsite) 158,035 151,173 88% 24% 22% 28.3% 83% 17% 27.2% 27.2% 83% 126,263 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO
Slide 15: Other financial highlights
Other financial highlights CASH CONVERSION TREASURY OTHERS ✓ Free cash flow at $ 71.6 Mn, ✓ Hedge book at $ 2,275 Mn ✓ Tax rate at 22.8% in Q1 FY23, conversion to PAT at 50.2% compared to $ 2,233 Mn in Q4 compared to 17.5% in Q4 FY22 FY22 ✓ DSO @100 days in Q1 FY23 compared to 97 days in Q4 FY22, ✓
Slide 16: Financial Summary: Q1'23
Financial Summary: Q1’23 in $ Mn Q1’23 QoQ YoY Revenue 1,632 1.5% 18.0% EBIT 177 -16.2% -15.3% EBIT % 11.0% Other Income 16 -62.9% -59.6% Miscellaneous + Interest Income 9 Exchange Gain/(Loss) 7 Profit Before Tax 188 -24.0% -22.7% Provision for tax 43 Profit After Tax 143 -28.0% -22.0% PAT % 8.9% EP