Slide 1: Earnings Presentation Q2FY23
Earnings Presentation Q2FY23 November 2022 Copyright © 2022 Tech Mahindra. All rights reserved. 1
Slide 2: Q2 FY23 Snapshot
Q2 FY23 Snapshot $ 1,638 Mn 9.8% $ 253 Mn Revenue PAT Margin Free Cash flow 11.4% $ 716 Mn EBIT Margin Net New Deal Wins Copyright © 2022 Tech Mahindra. All rights reserved. 2
Slide 3: Q2 FY23 Snapshot
Q2 FY23 Snapshot FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas 0.3% 163,912 +3.1% cc +2.4%cc (+2.9% cc) (+5,877) (-1.3%) (+2.6%) EBIT % IT LTM attrition Enterprise Europe 40 bps 19.6% +2.8%cc +3.6%cc (+70 bps cc) (down 260 bps) (+1.5%) (-3.5%) PAT % Utilization IT ROW 90 bps
Slide 4: Management Commentary
Management Commentary CP Gurnani CEO, Tech Mahindra “We continue to focus on being resilient and agile to ensure long-term value for our people, customers, partners, and the society at large. While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated of
Slide 5: Business Update
Business Update ✓ Focus on improving profitability through ✓ Robust demand for transformation operational rigor projects ✓ Growth in CME on the back of 5G deals ✓ Reaping benefits of synergy with integrated offerings Strategy Customers ESG Operations ✓ Included in the FTSE4Good Index ✓ Utilization i
Slide 6: Vertical Performance
Vertical Performance VERTICALS Communications, Banking, Financial Manufacturing Technology Retail, Transport Others Media & Services & & Logistics Entertainment Insurance % SHARE 39.7% 16.3% 16.0% 10.1% 8.1% 9.8% % QoQ -1.3% -2.0% +5.1% +4.5% +3.4% -2.7% % YoY +10.3% +11.0% +11.1% +25.5% +16.4% 0% C
Slide 7: Deal-Win Performance
Deal-Win Performance Total TCV Q2 FY23: $ 716Mn Select Deals: Won a strategic deal with Selected for a multi-year Won a deal with one of Chosen by one of the one of the largest players by a leading world’s largest growing largest omni-channel in wealth management & communications service ERP solutio
Slide 8: Strategic Highlights
Strategic Highlights COLLABORATIONS OTHER HIGHLIGHTS Tech Mahindra partners with Google to launch Street View in India. Partnership will leverage Tech Mahindra’s ‘Gullyfy’ project aiding GIS processes Tech Mahindra launches YANTR.AI, a transformational from data creation, resourcing, insights genera
Slide 9: People Highlights
People Highlights STRENGTH & AWARDS DIVERSITY ATTRITION LTM attrition reduced to 19.6% Tech Mahindra won 10 Gold, 4 Improved Gender diversity from from 22.2% last quarter. Silver and 1 Bronze across 34.4% to 34.9% Brandon Hall HCM Excellence Net additions of 5,877 led by BPS Awards 2022 and Stevie A
Slide 10: ESG Highlights: Sustainability
ESG Highlights: Sustainability New renewable energy facility Included in the FTSE4Good Index Recognized by Dun & Bradstreet with a capacity of 1.5 Mega Watts 2022 India as the Top Performer in the at Noida Campus ESG Performance in the Software and BPM sector at India’s Top 500 companies’ event Copy
Slide 11: ESG Highlights: Social
ESG Highlights: Social Teacher beneficiaries of our Tech Mahindra won the CSR MOU signed between TMF and SHIKSHAANTAR program Universe Social Impact Awards Jamia Hamdard University (JHU), received the National Teacher 2022 in the category of impact Delhi. Partnership will help Award from the Preside
Slide 12: Management Commentary
Management Commentary Rohit Anand CFO, Tech Mahindra “We have taken several targeted measures to achieve operational efficiencies and ensure long term sustainable growth. While we continue to address the dynamic market, we will remain focused on creating value for our stakeholders, through continued
Slide 13: Financial Snapshot
Financial Snapshot REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 223 181 1,632 1,638 466 459 456 177 184 159 1,473 143 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 253 15.1 14.5 12.8 188 1,626 28.4% 1
Slide 14: Operational Snapshot
Operational Snapshot HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 163,912 158,035 87% 21% 22% 85% 20% 28% 27% 141,193 83% 27% Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 1279 31% 100
Slide 15: Capital Allocation
Capital Allocation CAPITAL RETURN Board approves Special Dividend of Rs 18/ Share Copyright © 2022 Tech Mahindra. All rights reserved. 15
Slide 16: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Free cash flow at $ 253 Mn, Hedge book at $ 2,392 Mn Tax rate at 21.9% in Q2 FY23, conversion to PAT at 159% compared to $ 2,275 Mn in Q1 compared to 22.8% in Q1 FY23 FY23 DSO @ 98 days in Q2 FY23 compared to 100 days in Q1 FY23, largely dri
Slide 17: Financial Summary
Financial Summary in $ Mn Q2’23 QoQ YoY Revenue 1638 0.3% 11.2% EBIT 184 3.9% -17.6% EBIT % 11.4% Other Income 36 131.0% -4.8% Miscellaneous + Interest 20 Income Exchange Gain/(Loss) 16 Profit Before Tax 206 9.5% -19.9% Provision for tax 45 Profit After Tax 159 11.2% -12.3% PAT % 9.8% EPS (Basic) in