Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Q4 FY2024 Earnings Presentation
23 slides from Tech Mahindra's earnings presentation, April 2024
Slide 1: Earnings Presentation Q4FY24
Earnings Presentation Q4FY24 April 2024 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 1
Slide 2: Q4 FY24 Snapshot
Q4 FY24 Snapshot $ 1,548 Mn 5.1% $ 129 Mn Revenue PAT Margin Free Cash flow 7.4% $ 500 Mn EBIT Margin Net New Deal Wins Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 2
Slide 3: Q4 FY24 Snapshot (QoQ trends)
Q4 FY24 Snapshot All trends are QoQ, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas -1.6% 145,455 -2.8% -3.6% (-0.8% cc) (-795) EBIT % IT LTM attrition Enterprise Europe 7.4% 10.0% -0.9% 0.2% (up 200 bps) (down 30 bps) PAT % Utilization IT ROW 5.1% (inc
Slide 4: Q4 FY24 Snapshot (YoY trends)
Q4 FY24 Snapshot All trends are YoY, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas -7.2% 145,455 -16.5% -4.9% (-6.4% cc) (-6,945) EBIT % IT LTM attrition Enterprise Europe 7.4% 10.0% -0.9% -11.2% (down 380 bps) (down 480 bps) PAT % Utilization IT ROW 5
Slide 5: FY24 Snapshot
FY24 Snapshot $ 6,277 Mn 4.5% $ 676 Mn Revenue PAT Margin Free Cash flow 6.1% $ 1,880 Mn EBIT Margin Net New Deal Wins Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 5
Slide 6: FY24 Snapshot (YoY trends)
FY24 Snapshot All trends are YoY FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount CME Americas -5.0% 145,455 -12.4% -1.4% (-4.7% cc) (-6,945) EBIT % IT LTM attrition Enterprise Europe 6.1% 10.0% 0.0% -8.4% (down 530 bps) (down 480 bps) PAT % Utilization IT ROW 4.5% (incl trainees) -3.9% -8.
Slide 7: Management Commentary
Management Commentary Mohit Joshi CEO, Tech Mahindra As we step into FY'25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed, differentiates us f
Slide 8: Vertical Performance Q4 FY24
Vertical Performance Q4 FY24 Communications Banking, Financial Retail, Manufacturing VERTICALS , Media & Services & Technology Transport Others Entertainment Insurance & Logistics % SHARE 36.1% 18.2% 16.3% 10.7% 7.9% 10.8% % QoQ -2.8% -0.9% 3.5% 0.2% -9.4% -1.4% % YoY -16.5% 6.2% -4.8% -3.0% -3.1% -
Slide 9: Vertical Performance FY24
Vertical Performance FY24 Communications Banking, Financial Retail, Manufacturing VERTICALS , Media & Services & Technology Transport Others Entertainment Insurance & Logistics % SHARE 36.9% 17.7% 16.0% 10.7% 8.1% 10.5% % YoY -12.4% 7.3% -6.1% 1.0% -3.5% 0.1% Company Confidential | Copyright © 2023
Slide 10: Deal-Win Performance
Deal-Win Performance Total TCV Q4 FY24: $ 500 Mn Select Deals: Tech Mahindra was selected by a Sweden Tech Mahindra was selected by an Tech Mahindra was selected by a headquartered global Fintech bank to Australia based telecommunications Finnish based global marine and energy provide customer exper
Slide 11: Strategic Highlights: Generative AI
Strategic Highlights: Generative AI Industry’s First 60+ 20+ Launch of a Pre-built Gen AI Model families comprehensive Gen Capabilities across 6 integrated – not AI Studio forms of content just ChatGPT “In April 2023, Tech Mahindra “Tech Mahindra, is taking a distinctive "I really like that there's
Slide 12: Other Highlights: Collaborations
Other Highlights COLLABORATIONS ▪ Tech Mahindra and Indosat signed a Memorandum of Understanding to build 'Garuda,' a Large Language Model (LLM) to preserve Bahasa Indonesia, the official and national language of Indonesia and its dialects. Garuda will be built on the principles of Tech Mahindra's i
Slide 13: Other Highlights: New Launches & Partnerships
Other Highlights NEW LAUNCHES & PARTNERSHIPS ▪ Tech Mahindra launched “i.Riskman”, an ESG risk assessment platform designed to identify, assess, and manage climate-related risks. i.Riskman is a centralized platform for enterprise risk management that offers an automated risk register as a point of r
Slide 14: ESG & People Highlights
ESG & People Highlights STRENGTH & ATTRITION AWARDS “Best Organizations for Women 2024” – ET NOW “ESG Champion of India 2024” Software & IT services sector – Dun & Bradstreet Our employee strength is at 145,455 Only Indian IT company in the Top 5% of global sustainable companies & member of S&P Glob
Slide 15: Management Commentary
Management Commentary Rohit Anand CFO, Tech Mahindra With another quarter of robust cash generation, we have reported improvement in deal wins and operating margins in Q4FY’24, which has enabled consistent dividend distribution. We are confident that our actions will lead to steady earnings growth i
Slide 16: Financial Snapshot Q4 FY24
Financial Snapshot Q4 FY24 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 482 186 1,668 136 1,573 1,548 418 377 114 79 84 61 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 228 22% 12.6 949 14% 142 129 90
Slide 17: Operational Snapshot Q4 FY24
Operational Snapshot Q4 FY24 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 152,400 87.6% 27.2% 146,250 145,455 86.5% 86.4% 26.1% 14.8% 25.2% 10.3% 10.0% Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+
Slide 18: Financial Snapshot FY24
Financial Snapshot FY24 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 6,607 747 6,277 1,876 595 1,555 380 284 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 676 54.5 23.4% 497 949 12.5% 26.6 905 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24
Slide 19: Operational Snapshot FY24
Operational Snapshot FY24 HEADCOUNT UTILIZATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 152,400 27.3% 145,455 86.5% 86.4% 26.2% 14.8% 10.0% FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 1297 28% 96 92 27% 26 23 1172 FY23 FY24 FY23 FY2
Slide 20: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Hedge book at $ 2,400 Mn Tax rate at 30.7% in Q4 FY24, Free cash flow at $129 M compared to $ 2,326 Mn in Q3 FY24 compared to 22.8% in Q3 FY24 Final Dividend @ Rs. 28 per share Total Dividend for FY24 @ Rs. 40 USD/INR Q4 FY24 average per sha
Slide 21: Financial Summary Q4 FY24
Financial Summary Q4 FY24 in $ Mn Q4FY’24 QoQ YoY Revenue 1,548 -1.6% -7.2% EBIT 114 34.7% -38.8% EBIT % 7.4% Other Income 45 326.1% 20.4% Miscellaneous + Interest Income 50 Exchange Gain/(Loss) (5) Impairment Costs 37 Profit Before Tax 115 41.3% -37.8% Provision for tax 35 Profit After Tax 79 29.5%
Slide 22: Financial Summary FY24
Financial Summary FY24 in $ Mn FY24 FY23 YoY Revenue 6,277 6,607 -5.0% EBIT 380 747 -49.2% EBIT % 6.0% 11.4% Other Income 110 119 -7.2% Miscellaneous + Interest Income 115 82 Exchange Gain/(Loss) (5) 37 Impairment Costs 55 29 Profit Before Tax 389 793 -51.0% Provision for tax 100 196 Profit After Ta
Slide 23: Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved.
Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 23