On consolidated basis
Quarter ended December 2022 compared
with Quarter ended September 2022.
Net
sales (including other operating income) of Tech Mahindra has increased 4.61%
to Rs 13734.6 crore.
Operating profit margin has jumped
from 14.93% to 15.61%, leading to 9.40% rise in operating profit to Rs 2,144.00
crore. Employee cost decreased from 52.52% to 51.36%.
Other expenses rose from 32.56% to 33.03%. Software
technology development services cost fell from 15.42% to 14.37%.
Other
income fell 14.82% to Rs 247.2 crore. PBIDT rose 6.28% to Rs 2391.2
crore. Provision for interest rose 42.91% to Rs 112.9
crore.
PBDT rose 4.95% to Rs 2278.3
crore. Provision for depreciation rose 1.30% to Rs 498.1 crore.
Profit before tax grew 6.01% to Rs
1,780.20 crore. Share of profit/loss was 41.18% higher at Rs -9
crore. Provision for tax was expense of Rs 485.9 crore, compared to
Rs 364.7 crore. Effective tax rate was 27.43% compared to 21.92%.
Net profit attributable to owners of
the company increased 0.87% to Rs 1,296.60 crore.
Promoters’
stake was 35.19% as of 31 December 2022 ,compared to 35.22% as of 30 September
2022 .
Quarter ended December 2022 compared
with Quarter ended December 2021.
Net sales (including other operating
income) of Tech Mahindra has increased 19.94% to Rs 13734.6
crore. Sales of BPO segment has gone up 33.45% to Rs 1,934.70 crore
(accounting for 14.09% of total sales). Sales of IT segment has gone
up 17.99% to Rs 11,799.90 crore (accounting for 85.91% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 4.08% to Rs
2,144.00 crore. PBIT of BPO segment rose 23.38% to Rs 372.60 crore
(accounting for 17.38% of total PBIT). PBIT of IT segment rose 0.76%
to Rs 1,771.40 crore (accounting for 82.62% of total PBIT).
PBIT
margin of BPO segment fell from 20.83% to 19.26%. PBIT margin of IT
segment fell from 17.58% to 15.01%. Overall PBIT margin fell from
17.99% to 15.61%.
Operating profit margin has declined
from 17.99% to 15.61%, leading to 4.08% rise in operating profit to Rs 2,144.00
crore. Employee cost increased from 49.43% to 51.36%.
Other expenses rose from 32.58% to 33.03%. Software
technology development services cost fell from 16.37% to 14.37%.
Other
income rose 10.80% to Rs 247.2 crore. PBIDT rose 4.73% to Rs 2391.2
crore. Provision for interest rose 233.04% to Rs 112.9
crore.
PBDT
rose 1.29% to Rs 2278.3 crore. Provision for depreciation rose
37.56% to Rs 498.1 crore.
Profit
before tax down 5.66% to Rs 1,780.20 crore. Share of profit/loss was
1,185.71% lower at Rs -9 crore. Provision for tax was expense of Rs
485.9 crore, compared to Rs 508.2 crore. Effective tax rate was
27.43% compared to 26.94%.
Net profit attributable to owners of
the company decreased 5.25% to Rs 1,296.60 crore.
Promoters’
stake was 35.19% as of 31 December 2022 ,compared to 35.67% as of 31 December
2021 .
Year-to-date (YTD) results analysis.
Net sales (including other operating income) of
Tech Mahindra has increased 21.65% to Rs 39572 crore. Sales of BPO
segment has gone up 33.91% to Rs 5,272.20 crore (accounting for 13.32% of total
sales). Sales of IT segment has gone up 19.96% to Rs 34,299.80 crore
(accounting for 86.68% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 1.29% to Rs
6,008.20 crore. PBIT of BPO segment rose 15.64% to Rs 915.60 crore
(accounting for 15.24% of total PBIT). PBIT of IT segment fell 0.92%
to Rs 5,092.60 crore (accounting for 84.76% of total PBIT).
PBIT
margin of BPO segment fell from 20.11% to 17.37%. PBIT margin of IT
segment fell from 17.98% to 14.85%. Overall PBIT margin fell from
18.23% to 15.18%.
Operating profit margin has declined
from 18.23% to 15.12%, leading to 0.88% rise in operating profit to Rs 5,983.80
crore. Employee cost increased from 49.92% to 51.80%.
Other expenses rose from 31.85% to 33.07%. Software
technology development services cost fell from 15.53% to 15.32%.
Other
income fell 16.78% to Rs 659.5 crore. PBIDT fell 1.20% to Rs 6643.3
crore. Provision for interest rose 116.20% to Rs 232.2
crore.
PBDT
fell 3.11% to Rs 6411.1 crore. Provision for depreciation rose
41.53% to Rs 1466.5 crore.
Profit before tax down 11.40% to Rs
4,944.60 crore. Share of profit/loss was 1,311.76% lower at Rs -24
crore. Provision for tax was expense of Rs 1188.6 crore, compared to
Rs 1494 crore. Effective tax rate was 24.16% compared to 26.78%.
Minority
interest decreased 24.59% to Rs 18.40 crore. Net profit attributable
to owners of the company decreased 8.54% to Rs 3,713.60 crore.
Promoters’
stake was 35.19% as of 31 December 2022 ,compared to 35.67% as of 31 December
2021 .
Full year results analysis.
Net sales (including other operating
income) of Tech Mahindra has increased 17.94% to Rs 44646
crore. Sales of BPO segment has gone up 43.49% to Rs 5,460.80 crore
(accounting for 12.23% of total sales). Sales of IT segment has gone
up 15.08% to Rs 39,185.20 crore (accounting for 87.77% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 17.13% to Rs
8,020.00 crore. PBIT of BPO segment rose 34.87% to Rs 1,085.60 crore
(accounting for 13.54% of total PBIT). PBIT of IT segment rose
14.77% to Rs 6,934.40 crore (accounting for 86.46% of total PBIT).
PBIT
margin of BPO segment fell from 21.15% to 19.88%. PBIT margin of IT
segment fell from 17.75% to 17.70%. Overall PBIT margin fell from
18.09% to 17.96%.
Operating profit margin has jumped
from 17.95% to 17.96%, leading to 18.01% rise in operating profit to Rs
8,020.00 crore. Employee cost decreased from 50.98% to 49.92%.
Other expenses rose from 31.07% to 32.12%.
Other
income rose 41.32% to Rs 1112.3 crore. PBIDT rose 20.42% to Rs
9132.3 crore. Provision for interest fell 6.55% to Rs 162.6
crore. Loan funds declined from Rs 2,900.80 crore as of 31 March
2021 to Rs 2,618.40 crore as of 31 March 2022. Inventories rose to
Rs 40.50 crore as of 31 March 2022 from Rs 24.20 crore as of 31 March
2021. Sundry debtors were higher at Rs 7,467.60 crore as of 31 March
2022 compared to Rs 6,472.80 crore as of 31 March 2021. Cash and
bank balance rose to Rs 3,974.50 crore as of 31 March 2022 from Rs 2,835.20
crore as of 31 March 2021. Investments declined from Rs 10,237.60
crore as of 31 March 2021 to Rs 4,883.80 crore as of 31 March 2022.
PBDT
rose 21.06% to Rs 8969.7 crore. Provision for depreciation rose
4.30% to Rs 1520.4 crore. Fixed assets increased to Rs 7,522.90
crore as of 31 March 2022 from Rs 5,128.60 crore as of 31 March
2021. Intangible assets increased from Rs 4,008.20 crore to Rs
7,425.80 crore.
Profit
before tax grew 25.16% to Rs 7,449.30 crore. Share of profit/loss
was 133.33% higher at Rs 2.8 crore. Provision for tax was expense of
Rs 1822 crore, compared to Rs 1599.9 crore. Effective tax rate was
24.45% compared to 26.88%.
Net
profit attributable to owners of the company increased 25.70% to Rs 5,566.10
crore.
Equity
capital increased from Rs 437.00 crore as of 31 March 2021 to Rs 438.80 crore
as of 31 March 2022. Per share face Value remained same at Rs
5.00.
Promoters’
stake was 35.26% as of 31 March 2022 ,compared to 35.76% as of 31 March 2021
.
Cash
flow from operating activities decreased to Rs 5,285.30 crore for year ended
March 2022 from Rs 8,093.80 crore for year ended March 2021. Cash
flow used in acquiring fixed assets during the year ended March 2022 stood at
Rs 958.40 crore, compared to Rs 666.00 crore during the year ended March
2021.
Management commentary:
Commenting on the performance Mr
C P Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra,
said“We are witnessing moderation in growth given the tough macro-economic environment. We will continue to work with our customers to
pre-empt their technological requirements and identify new demand drivers,
especially for digital services.”
Rahit Anand, Chief Financial
Officer said “Our numbers reflect resilience as we continue to work on the
expansion of operating margin. I am confident that our strategy of client
centricity & agility combined with delivery led transformation will help us
create value for our customers and stakeholders alike.”
| Tech Mahindra : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202212 | 202112 | Var.(%) | 202212 | 202112 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 13,734.60 | 11,450.80 | 19.94 | 39,572.00 | 32,529.70 | 21.65 | 44,646.00 | 37,855.10 | 17.94 | | OPM (%) | 15.61 | 17.99 | -238 bps | 15.12 | 18.23 | -311 bps | 17.96 | 17.95 | 1 bps | | OP | 2,144.00 | 2,060.00 | 4.08 | 5,983.80 | 5,931.60 | 0.88 | 8,020.00 | 6,796.30 | 18.01 | | Other Inc. | 247.20 | 223.10 | 10.80 | 659.50 | 792.50 | -16.78 | 1,112.30 | 787.10 | 41.32 | | PBIDT | 2,391.20 | 2,283.10 | 4.73 | 6,643.30 | 6,724.10 | -1.20 | 9,132.30 | 7,583.40 | 20.42 | | Interest | 112.90 | 33.90 | 233.04 | 232.20 | 107.40 | 116.20 | 162.60 | 174.00 | -6.55 | | PBDT | 2,278.30 | 2,249.20 | 1.29 | 6,411.10 | 6,616.70 | -3.11 | 8,969.70 | 7,409.40 | 21.06 | | Depreciation | 498.1 | 362.1 | 37.56 | 1466.5 | 1036.2 | 41.53 | 1520.4 | 1457.7 | 4.30 | | PBT | 1,780.20 | 1,887.10 | -5.66 | 4944.6 | 5580.5 | -11.40 | 7449.3 | 5951.7 | 25.16 | | Share of Profit/(Loss) from Associates | -9 | -0.7 | -1,185.71 | -24 | -1.7 | -1,311.76 | 2.8 | 1.2 | 133.33 | | PBT before EO | 1771.2 | 1886.4 | -6.11 | 4920.6 | 5578.8 | -11.80 | 7452.1 | 5952.9 | 25.18 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 1771.2 | 1886.4 | -6.11 | 4920.6 | 5578.8 | -11.80 | 7452.1 | 5952.9 | 25.18 | | Taxation | 485.9 | 508.2 | -4.39 | 1188.6 | 1494 | -20.44 | 1822 | 1599.9 | 13.88 | | PAT | 1285.3 | 1378.2 | -6.74 | 3732 | 4084.8 | -8.64 | 5630.1 | 4353 | 29.34 | | Minority Interest (MI) | -11.3 | 9.7 | LP | 18.4 | 24.4 | -24.59 | 64 | -75 | PL | | Net profit | 1296.6 | 1368.5 | -5.25 | 3713.6 | 4060.4 | -8.54 | 5566.1 | 4428 | 25.70 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 1296.6 | 1368.5 | -5.25 | 3713.6 | 4060.4 | -8.54 | 5566.1 | 4428 | 25.70 | | EPS (Rs)* | 13.31 | 14.05 | -5.25 | 38.13 | 41.69 | -8.54 | 57.16 | 45.47 | 25.70 | | | * EPS is on current equity of Rs 486.92 crore, Face value of Rs 5, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| Tech Mahindra : Consolidated Segment Results | td>-| | Quarter ended | Year to Date | Year ended |
|---|
| % of (Total) | 202212 | 202112 | Var.(%) | % of (Total) | 202212 | 202112 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
|---|
| Sales | | BPO | 14.09 | 1,934.70 | 1,449.80 | 33.45 | 13.32 | 5,272.20 | 3,937.10 | 33.91 | 12.23 | 5,460.80 | 3,805.60 | 43.49 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | Telecom Service Provider | 0.00 | 0.00 | 0.00 | - | | Others | 0.00 | 0.00 | 0.00 | - | | IT | 85.91 | 11,799.90 | 10,001.00 | 17.99 | 86.68 | 34,299.80 | 28,592.60 | 19.96 | 87.77 | 39,185.20 | 34,049.50 | 15.08 | | Total Reported Sales | 100.00 | 13,734.60 | 11,450.80 | 19.94 | 100.00 | 39,572.00 | 32,529.70 | 21.65 | 100.00 | 44,646.00 | 37,855.10 | 17.94 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 13,734.60 | 11,450.80 | 19.94 | 100.00 | 39,572.00 | 32,529.70 | 21.65 | 100.00 | 44,646.00 | 37,855.10 | 17.94 | | PBIT | | BPO | 17.38 | 372.60 | 302.00 | 23.38 | 15.24 | 915.60 | 791.80 | 15.64 | 13.54 | 1,085.60 | 804.90 | 34.87 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | Telecom Service Provider | 0.00 | 0.00 | 0.00 | - | | Others | 0.00 | 0.00 | 0.00 | - | | IT | 82.62 | 1,771.40 | 1,758.00 | 0.76 | 84.76 | 5,092.60 | 5,139.80 | -0.92 | 86.46 | 6,934.40 | 6,042.10 | 14.77 | | Total PBIT | 100.00 | 2,144.00 | 2,060.00 | 4.08 | 100.00 | 6,008.20 | 5,931.60 | 1.29 | 100.00 | 8,020.00 | 6,847.00 | 17.13 | | Less : Interest | | 112.90 | 33.90 | 233.04 | | 232.20 | 107.40 | 116.20 | | 162.60 | 174.00 | -6.55 | | Add: Other un-allcoable | | -259.90 | -139.70 | -86.04 | | -855.40 | -245.40 | -248.57 | | -405.30 | -720.10 | 43.72 | | PBIT Margin(%) | | BPO | | 19.26 | 20.83 | -157.17 | | 17.37 | 20.11 | -274.47 | | 19.88 | 21.15 | -127.05 | | Telecom Equipment Manufacturer | | 0.00 | 0.00 | 0.00 | | Telecom Service Provider | | 0.00 | 0.00 | 0.00 | | Others | | 0.00 | 0.00 | 0.00 | | IT | | 15.01 | 17.58 | -256.63 | | 14.85 | 17.98 | -312.87 | | 17.70 | 17.75 | -4.86 | | PBT | 100.00 | 1,771.20 | 1,886.40 | -6.11 | 100.00 | 4,920.60 | 5,578.80 | -11.80 | 100.00 | 7,452.10 | 5,952.90 | 25.18 |
|
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