TechMahindra reports 29% increase in PAT, Board recommends dividend of Rs 28 per share

New Delhi – April 26th, 2024.

Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industriesannounced the audited consolidated financial results for its quarter and yearended March 31st, 2024.

Financial highlights for the quarter (USD)
Revenue at USD 1,548mn; down1.6% QoQ, down 7.2% YoYRevenue declined by 0.8% QoQ, by 6.4% YoY in constant currency termsEBITDA at USD 169mn; up 22.9% QoQ, down 31.1% YoY; Margin at 10.9%, up 220bps QoQProfit after tax (PAT) at USD 79mn; up 29.5% QoQ, down 41.5% YoYFree cash flow at USD 129mn
Financial highlights for the quarter (₹)
Revenue at ₹12,871crores; down1.8% QoQ, down 6.2% YoYEBITDA at ₹ 1,408crores; up 22.8% QoQ, down 30.3% YoYConsolidated PAT at ₹ 661crores; up 29.5% QoQ, down 40.9% YoYEarnings per share (EPS) at ₹ 7.45
Financial highlights for the year (USD)
Revenue at USD 6,277mn;down 5.0% YoYRevenue declined by 4.7%YoY in constant currency termsEBITDA at USD 599mn;down 39.5% YoY; Margin at 9.6%, down550bps YoYProfit after tax (PAT) at USD 284mn; down 52.2% YoYFree cash flow at USD676mn      
Financial highlights for the year (₹)
Revenue at ₹51,996crores; down 2.4% YoYEBITDA at ₹ 4,965crores;down 38.2% YoYConsolidated PAT at ₹ 2,358crores;down 51.2% YoYEarnings per share (EPS) at ₹ 26.58
Other Highlights
Total headcount at 145,455down795QoQ;Cash and Cash Equivalent at INR 7,912cr as of March 31, 2024      

Mohit Joshi, Chief Executive Officerand Managing Director, Tech Mahindra,said,

“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 from competitors. FY’24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, said,

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 in the coming years. We will continue to focus on operational excellence and cost savings to deliver superior shareholder returns.

Key Wins
  • Tech Mahindra was selected by a Sweden headquartered global Fintech bank to provide customer experience and support services for itsclients across Europe, the Americas, and the ANZ region.This deal also resulted in Tech Mahindra establishing a new delivery centre in the region, further expanding the company’s footprint in the fast-growing Nordic market.
  • Tech Mahindra was selected by an Australian telecommunications company to transform itsbusiness processes across multiple service lines, including customer operations and experience, complex enterprise operations, back office and support operations, through the deployment of intelligent automation and new-age customer experience technologies.
  • Tech Mahindra was selected by a Finnish global marine and energy tech manufacturing organization to deliver Infrastructure and Cloud Services. Tech Mahindra will provide Digital Workplace Services & DaaS for the customers’ global workforce, End User Services, SIAM, Service Desk and ICT Production Services, and Cloud Excellence Services.
Business Highlights
  • Tech Mahindra and Indosat Ooredoo Hutchison (Indosat or IOH) signed a Memorandum of Understanding (MoU) 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 indigenous LLM ‘Project Indus’, a foundational model designed to converse in a multitude of Indic languages and dialects. The partnership will create multiple use cases and enable Indosat’s customers to leverage various applications, including customer support, experience, and content creation across industries.
  • Tech Mahindra signed a strategic partnership with Etihad Etisalat (Mobily), a leading TMT company in Saudi Arabia, to deliver best-in-class loyalty programs for its individual and business customers. Focused on elevating customer loyalty programs, the partnership will deploy Comviva’s GenAI-powered next-generation MobiLytix™ Rewards to revamp Mobily’s Neqaty loyalty program. The partnership will also provide gamification, digital marketing technology, and advanced business analytics to execute high-impact loyalty marketing programs for Mobily’s customers.
  • Tech Mahindra and Pegatron, a global leader in technology and electronics manufacturing, signed a Memorandum of Understanding (MoU) to develop private 5G solutions for global enterprises. The partnership will explore mutually beneficial opportunities in the fast-growing private 5G space, positioning it as a catalyst for business growth, by leveraging the purpose-built private 5G product portfolio marketed under Pegatron’s 5G business unit, combined with Tech Mahindra’s proven expertise in large-scale 5G transformations.
  • Tech Mahindra announced the opening of a Synergy Lounge in collaboration with IBM to accelerate digital adoption for enterprises in the APAC region. Located at Tech Mahindra’s campus in Singapore, the Lounge will assist enterprises in operationalizing and deriving value from next-gen technologies, including AI, Intelligent Automation, Hybrid Cloud, 5G, Edge Computing, Cybersecurity, among others. The Lounge will be open to enterprises worldwide to explore joint solutions, test prototypes and proof of value (PoV) designed to drive innovation across industries.
  • Tech Mahindra announced a strategic partnership with Competera,a US headquarteredpioneer in AI-powered pricing technologies company that enables retailers to set and maintain optimal pricing in real-time. The partnership will provide retailers with swift and efficient deployment of price optimization solutions using Competera’s AI pricing platform combined with Tech Mahindra’s comprehensive end-to-end business engineering services, including consulting, integration, customization, and product support, empowering them to increase bottom-line metrics and foster brand loyalty.
  • Tech Mahindra announced the launch of i.Riskman, an ESG risk assessment platform designedto 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 reference for the risk management committee and the board. It is designed to be flexible, agile, and scalable, adapting to evolving and expanding risks. Additionally, the platform will empower customers with real-time analysis, access to the latest climate models, advanced data visualization, and analytics.
  • Tech Mahindra announced a strategic partnership with TOTSCo to design, build and operate a message-exchange platform for the UK telecom industry. The platform built with a state-of-the-art cloud-native architecture ensures security, robustness, and scalability, allowing consumers to seamlessly switch telecom service providers and take advantage of the range of available services. TOTSCo Hub will utilize Comviva’sBlueMarble Business Support System (BSS) platform and WSO2’s API Management and Integration software for Communication Provider (CP) Management. This partnership will support the management of the platform which will facilitate easy integration of delivery and operations teams across multiple domains such as business, IT, infrastructure, and security.
  • Tech Mahindra signed a strategic partnership with Proximus, Belgium’s leading digital services and communications solutions provider to jointly design and build a technology platform, ‘Tech Hub’ that will provide next-generation connectivity offerings for business-to-consumer (B2C), business-to-business (B2B), and business-to-business-to-any (B2B2X) segments. With the new platform, consumers and businesses will be able to explore, purchase, and activate the services from Proximus as well as their partner ecosystem with self-service options and take advantage of the range of next-generation digital offerings.
Awards and Recognitions
  • Tech Mahindra was recognized amongst the ‘Best Organizations for Women 2024’ by ET NOW.
  • Tech Mahindra was listed in the CDP Supplier Engagement Leaderboard 2023 and recognized as the only Indian Company to have received the ‘A’ score for Transparency,in both, Climate Change and Water Security by CDP.
  • Tech Mahindra is the only Indian IT company to be included in the top 5% of global sustainable companies and a member of S&P Global Yearbook 2024 for the 9th consecutive year.
  • Tech Mahindra was recognized as ‘ESG Champion of India 2024’ in the Software & IT Services sector by Dun & Bradstreet.
  • Tech Mahindra was classified as a “Low Risk” entity and included in Morningstar Sustainalytics 2024 Top ESG rated companies list.
Analyst Ratings & Recognitions
  • Tech Mahindra won the most number of Standouts in the 2023 ISG Case Study Research.
  • Tech Mahindra recognized as a Leader in the Retail IT Services PEAK Matrix® Assessment 2024 by Everest.
  • Tech Mahindra recognized as a Leader in the Procurement Services 2024 – Global – Direct Procurement Enablement and Modernization Services quadrant by ISG.
  • Tech Mahindra recognized as a Leader in NelsonHall CX Services Transformation 2024 NEAT (Overall), quadrant by Nelson Hall.
  • Tech Mahindra recognised by HFS Research as a Market Leader in HFS Horizons: Customer Experience Service Providers, 2024 report.