Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Q1 FY2025 Earnings Presentation
18 slides from Tech Mahindra's earnings presentation, July 2024
Slide 1: Earnings Presentation Q1 FY'25
+ > + > Earnings + + + + + + + + + + + + + + + + + + + + + + + + + + + > + > + > + + + + + + + + Presentation + + + + + + + + + + + + + + + + + + + Q1 FY’25 July 2024 Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 1
Slide 2: Q1 FY25 Snapshot
Q1 FY25 Snapshot $ 1,559 Mn 6.5% $ 106 Mn Revenue PAT Margin Free Cash flow 8.5% $ 534 Mn EBIT Margin Net New Deal Wins + + + + + + > > + + + + Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 2
Slide 3: Q1 FY25 Snapshot (YoY)
Q1 FY25 Snapshot All trends are YoY, except where specified FINANCIAL OPERATIONAL SEGMENT* GEOGRAPHY Revenue Headcount Americas IT -2.6% 147,620 -0.6% (-1.2% cc) ( down 677) -3.0% EBIT % IT LTM attrition BPS Europe 8.5% 10.1% -0.4% -7.3% (up 170 bps) (down 270 bps) PAT % Utilization ROW 6.5% (incl.
Slide 4: Q1 FY25 Snapshot (QoQ)
Q1 FY25 Snapshot All trends are QoQ, except where specified FINANCIAL OPERATIONAL SEGMENT* GEOGRAPHY Revenue Headcount Americas IT 0.7% 147,620 0.6% 3.9% (0.7% cc) (up 2,165) EBIT % IT LTM attrition BPS Europe 8.5% 10.1% 1.3% -2.6% (up 110 bps) (up 10 bps) PAT % Utilization ROW 6.5% (incl. trainees)
Slide 5: Vertical Performance Q1 FY25
Vertical Performance Q1 FY25 Banking, Financial Technology, Retail, Healthcare & VERTICALS Communications Manufacturing Services & Media & Transport Others Lifesciences Insurance Entertainment & Logistics % SHARE 33.1% 18.3% 15.7% 13.8% 7.7% 7.7% 3.7% % YoY -9.9% 6.4% -1.2% -3.5% 4.9% 6.1% -5.5% % Q
Slide 6: Management Commentary
Management Commentary It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27. + + + + + + > > Mohit Jos
Slide 7: Deal-Win Performance
Deal-Win Performance Total TCV Q1 FY25: $ 534 Mn Selected by UK’s leading network services Selected by leading US based Teleco to build, Secured a strategic partnership with an provider to build, operate, support and modernise, and operate various front and Australian healthcare company. As a prefer
Slide 8: Strategic Highlights: Generative AI
Strategic Highlights: Generative AI Tech Mahindra launches Product AI Unique 4 Dimensional 100+ TechM VerifAI, industry’s Modernizing Workplace Approach for measuring AI / Gen AI Solutions unique solution for Experiences with Gen validating and verifying GenAI driven productivity & Offerings AI to h
Slide 9: Strategic Highlights: Brand Awareness & Perception
Strategic Highlights: Brand Awareness & Perception Launch of the new website WSJ Big Thinkers – new episode with TIME Most Sustainable Companies the CEO of Ahlstrom in the World Advisor Day held in Pune HFS GenAI Roundtable in London Chess.com becomes the Official Platform Partner of TechM GCL “Tech
Slide 10: Other Highlights: Collaborations
Other Highlights COLLABORATIONS Tech Mahindra announced a collaboration Tech Mahindra announced a collaboration Tech Mahindra and Cisco have with Dell Technologies and Intel to with IBM to help businesses worldwide expanded their partnership to deliver a implement its Project Indus's 'GenAI in a res
Slide 11: Other Highlights: New Launches & Partnerships
Other Highlights NEW LAUNCHES & PARTNERSHIPS i Tech Mahindra announced a strategic Tech Mahindra has partnered with Fuji TV to Tech Mahindra has partnered with TM Forum partnership with Atento, to deliver solutions create content for the global entertainment to enhance the workforce and drive digita
Slide 12: ESG & People Highlights
ESG & People Highlights STRENGTH & ATTRITION AWARDS Recognised as one of the ‘World’s Most Sustainable Companies of 2024’ and achieved number one position among all Indian companies and 111th position globally Our employee – World's Most Sustainable Companies 2024 list by TIME strength is at magazin
Slide 13: Management Commentary
Management Commentary The Q1 results are a positive start both for current turnaround year as well as for our medium-term strategy. As we mentioned in our strategic priorities, our focus continues to be on investing in the business for long-term sustainable performance. + + + + + + > > Rohit Anand +
Slide 14: Financial Snapshot Q1 FY25
Financial Snapshot Q1 FY25 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 1,601 1,559 1,548 418 411 414 132 114 102 108 84 79 Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 17.6% 14.6% 14.6% 9.6 966 7.8
Slide 15: Operational Snapshot Q1 FY25
Operational Snapshot Q1 FY25 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 148,297 147,620 87.2% 26.9% 145,455 86.4% 86.1% 12.8% 10.0% 10.1% 25.2% 24.6% Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+
Slide 16: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Hedge book at $ 2,204 Mn Tax rate at 26.6% in Q1 FY25, Free cash flow at $106 M compared to $ 2,400 Mn in Q4 FY24 compared to 30.7% in Q4 FY24 DSO @ 93 days USD/INR Q1 FY25 average exchange rate at 83.43 + + + + + + > > + + + + Company Confi
Slide 17: Financial Summary Q1 FY25
Financial Summary Q1 FY25 in $ Mn Q1FY’25 QoQ YoY Revenue 1,559 0.7% -2.6% EBIT 132 16.2% 22.0% EBIT % 8.5% Other Income 17 -61.2% -25.7% + + Miscellaneous + Interest Income 18 > > Exchange Gain/(Loss) (1) + + Impairment Costs 0 Profit Before Tax 141 22.7% 19.6% Provision for tax 38 Profit After Tax
Slide 18: Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved.
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + > > > + + + + + + + + + + + + + + + + + + + + + + Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 18