On consolidated basis
Quarter ended March 2023 compared
with Quarter ended December 2022.
Net sales (including other operating income) of Tech Mahindra has declined
0.12% to Rs 13718.2 crore.
Operating profit margin has declined
from 15.61% to 13.18%, leading to 15.67% decline in operating profit to Rs
1,808.00 crore. Employee cost increased from 51.36% to 52.43%.
Other expenses rose from 33.03% to 34.40%. Software
technology development services cost fell from 14.37% to 14.11%.
Other income rose 23.58% to Rs 305.5
crore. PBIDT fell 11.61% to Rs 2113.5 crore. Provision
for interest fell 17.27% to Rs 93.4 crore. Loan funds remained
nil.
PBDT fell 11.33% to Rs 2020.1
crore. Provision for depreciation fell 1.59% to Rs 490.2
crore.
Profit before tax down 14.06% to Rs
1,529.90 crore. Share of profit/loss was 44.44% higher at Rs -5
crore. Provision for tax was expense of Rs 399.9 crore, compared to
Rs 485.9 crore. Effective tax rate was 26.22% compared to 27.43%.
Net profit attributable to owners of
the company decreased 13.80% to Rs 1,117.70 crore.
Promoters’ stake was 35.18% as of 31
March 2023 ,compared to 35.19% as of 31 December 2022 .
Quarter ended March 2023 compared
with Quarter ended March 2022.
Net sales (including other operating income) of Tech Mahindra has increased
13.22% to Rs 13718.2 crore. Sales of BPO segment has gone up 26.06%
to Rs 1,920.80 crore (accounting for 14.00% of total sales). Sales
of IT segment has gone up 11.37% to Rs 11,797.40 crore (accounting for 86.00%
of total sales).
Profit before interest, tax and
other unallocable items (PBIT) has slumped 3.25% to Rs 2,020.50
crore. PBIT of BPO segment rose 18.01% to Rs 346.70 crore
(accounting for 17.16% of total PBIT). PBIT of IT segment fell 6.73%
to Rs 1,673.80 crore (accounting for 82.84% of total PBIT).
PBIT margin of BPO segment fell from
19.28% to 18.05%. PBIT margin of IT segment fell from 16.94% to
14.19%. Overall PBIT margin fell from 17.24% to 14.73%.
Operating profit margin has declined
from 17.24% to 13.18%, leading to 13.43% decline in operating profit to Rs
1,808.00 crore. Employee cost increased from 49.91% to 52.43%.
Other expenses rose from 32.85% to 34.40%. Software
technology development services cost fell from 15.74% to 14.11%.
Other income fell 4.47% to Rs 305.5
crore. PBIDT fell 12.24% to Rs 2113.5 crore. Provision
for interest rose 69.20% to Rs 93.4 crore. Loan funds rose to Rs
2,740.20 crore as of 31 March 2023 from Rs 2,618.40 crore as of 31 March 2022. Inventories
declined from Rs 40.50 crore as of 31 March 2022 to Rs 23.60 crore as of 31
March 2023. Sundry debtors were higher at Rs 8,142.40 crore as of 31
March 2023 compared to Rs 7,467.60 crore as of 31 March 2022. Cash
and bank balance rose to Rs 4,254.70 crore as of 31 March 2023 from Rs 3,974.50
crore as of 31 March 2022. Investments declined from Rs 4,883.80
crore as of 31 March 2022 to Rs 3,388.10 crore as of 31 March 2023.
PBDT fell 14.15% to Rs 2020.1
crore. Provision for depreciation rose 1.24% to Rs 490.2
crore. Fixed assets increased to Rs 4,117.80 crore as of 31 March
2023 from Rs 3,864.30 crore as of 31 March 2022. Intangible assets
declined from Rs 11,084.40 crore to Rs 10,933.40 crore.
Profit before tax down 18.13% to Rs
1,529.90 crore. Provision for tax was expense of Rs 399.9 crore,
compared to Rs 328 crore. Effective tax rate was 26.22% compared to
17.51%.
Minority interest decreased 81.57%
to Rs 7.30 crore. Net profit attributable to owners of the company
decreased 25.77% to Rs 1,117.70 crore.
Equity capital increased from Rs
438.80 crore as of 31 March 2022 to Rs 440.00 crore as of 31 March
2023. Per share face Value remained same at Rs 5.00.
Promoters’ stake was 35.18% as of 31
March 2023 ,compared to 35.26% as of 31 March 2022 .
Full year results analysis.
Net sales (including other operating income) of Tech Mahindra has increased
19.36% to Rs 53290.2 crore. Sales of BPO segment has gone up 31.72%
to Rs 7,193.00 crore (accounting for 13.50% of total sales). Sales
of IT segment has gone up 17.64% to Rs 46,097.20 crore (accounting for 86.50%
of total sales).
Profit before interest, tax and
other unallocable items (PBIT) has jumped 0.11% to Rs 8,028.60
crore. PBIT of BPO segment rose 16.27% to Rs 1,262.20 crore
(accounting for 15.72% of total PBIT). PBIT of IT segment fell 2.42%
to Rs 6,766.40 crore (accounting for 84.28% of total PBIT).
PBIT margin of BPO segment fell from
19.88% to 17.55%. PBIT margin of IT segment fell from 17.70% to
14.68%. Overall PBIT margin fell from 17.96% to 15.07%.
Operating profit margin has declined
from 17.96% to 14.62%, leading to 2.85% decline in operating profit to Rs
7,791.80 crore. Employee cost increased from 49.92% to 51.96%.
Other expenses rose from 32.12% to 33.41%. Software
technology development services cost fell from 15.58% to 15.01%.
Other income fell 13.24% to Rs 965
crore. PBIDT fell 4.11% to Rs 8756.8 crore. Provision for
interest rose 100.25% to Rs 325.6 crore. Loan funds rose to Rs
2,740.20 crore as of 31 March 2023 from Rs 2,618.40 crore as of 31 March
2022. Inventories declined from Rs 40.50 crore as of 31 March 2022
to Rs 23.60 crore as of 31 March 2023. Sundry debtors were higher at
Rs 8,142.40 crore as of 31 March 2023 compared to Rs 7,467.60 crore as of 31
March 2022. Cash and bank balance rose to Rs 4,254.70 crore as of 31
March 2023 from Rs 3,974.50 crore as of 31 March 2022. Investments
declined from Rs 4,883.80 crore as of 31 March 2022 to Rs 3,388.10 crore as of
31 March 2023.
PBDT fell 6% to Rs 8431.2
crore. Provision for depreciation rose 28.70% to Rs 1956.7
crore. Fixed assets increased to Rs 4,117.80 crore as of 31 March
2023 from Rs 3,864.30 crore as of 31 March 2022. Intangible assets
declined from Rs 11,084.40 crore to Rs 10,933.40 crore.
Profit before tax down 13.09% to Rs
6,474.50 crore. Provision for tax was expense of Rs 1588.5 crore,
compared to Rs 1822 crore. Effective tax rate was 24.65% compared to
24.45%.
Minority interest decreased 59.84%
to Rs 25.70 crore. Net profit attributable to owners of the company
decreased 13.20% to Rs 4,831.30 crore.
Equity capital increased from Rs
438.80 crore as of 31 March 2022 to Rs 440.00 crore as of 31 March
2023. Per share face Value remained same at Rs 5.00.
Promoters’ stake was 35.18% as of 31
March 2023 ,compared to 35.26% as of 31 March 2022 .
Cash flow from operating activities
increased to Rs 5,572.00 crore for year ended March 2023 from Rs 5,285.30 crore
for year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 1,015.20 crore, compared to Rs
958.40 crore during the year ended March 2022.
Dividend: The
board has approved final dividend of Rs 32 per equity share taking the total
dividend for FY 23 to Rs 50 per share, which is an expansion of close to 11%
from Rs 45 a share in FY2022.
Management commentary:
Commenting on the performance CP Gurnani, Managing Director & Chief Executive Officer, Tech
Mahindra, said,“As we step into FY`24, we see the increasing need for
businesses to stay agile by leveraging next generation technologies. We are
strongly focused on helping our customers stay competitively dominant and
relevant in the era of fast evolving market conditions by helping them adapt to
leaner and sustainable business models”
RohitAnand, Chief Financial Officer, Tech Mahindra,
said,“Our strategy of prudence and operational excellence helped us through the
uncertainties of FY’23. We continue to return cash to shareholders through a
consistent dividend policy. We move into the next fiscal, with sharper focus on
productivity improvements, cash & value creation for our stakeholders”
| Tech Mahindra : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202303 | 202203 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 13,718.20 | 12,116.30 | 13.22 | 53,290.20 | 44,646.00 | 19.36 | | OPM (%) | 13.18 | 17.24 | -406 bps | 14.62 | 17.96 | -334 bps | | OP | 1,808.00 | 2,088.40 | -13.43 | 7,791.80 | 8,020.00 | -2.85 | | Other Inc. | 305.50 | 319.80 | -4.47 | 965.00 | 1,112.30 | -13.24 | | PBIDT | 2,113.50 | 2,408.20 | -12.24 | 8,756.80 | 9,132.30 | -4.11 | | Interest | 93.40 | 55.20 | 69.20 | 325.60 | 162.60 | 100.25 | | PBDT | 2,020.10 | 2,353.00 | -14.15 | 8,431.20 | 8,969.70 | -6.00 | | Depreciation | 490.2 | 484.2 | 1.24 | 1956.7 | 1520.4 | 28.70 | | PBT | 1,529.90 | 1,868.80 | -18.13 | 6474.5 | 7449.3 | -13.09 | | Share of Profit/(Loss) from Associates | -5 | 4.5 | PL | -29 | 2.8 | PL | | PBT before EO | 1524.9 | 1873.3 | -18.60 | 6445.5 | 7452.1 | -13.51 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 1524.9 | 1873.3 | -18.60 | 6445.5 | 7452.1 | -13.51 | | Taxation | 399.9 | 328 | 21.92 | 1588.5 | 1822 | -12.82 | | PAT | 1125 | 1545.3 | -27.20 | 4857 | 5630.1 | -13.73 | | Minority Interest (MI) | 7.3 | 39.6 | -81.57 | 25.7 | 64 | -59.84 | | Net profit | 1117.7 | 1505.7 | -25.77 | 4831.3 | 5566.1 | -13.20 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 1117.7 | 1505.7 | -25.77 | 4831.3 | 5566.1 | -13.20 | | EPS (Rs)* | 11.47 | 15.46 | -25.77 | 49.59 | 57.14 | -13.20 | | | * EPS is on current equity of Rs 487.08 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 | | | Quarter ended | Year ended |
|---|
| % of (Total) | 202303 | 202203 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
|---|
| Sales | | BPO | 14.00 | 1,920.80 | 1,523.70 | 26.06 | 13.50 | 7,193.00 | 5,460.80 | 31.72 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | IT | 86.00 | 11,797.40 | 10,592.60 | 11.37 | 86.50 | 46,097.20 | 39,185.20 | 17.64 | | Total Reported Sales | 100.00 | 13,718.20 | 12,116.30 | 13.22 | 100.00 | 53,290.20 | 44,646.00 | 19.36 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 13,718.20 | 12,116.30 | 13.22 | 100.00 | 53,290.20 | 44,646.00 | 19.36 | | PBIT | | BPO | 17.16 | 346.70 | 293.80 | 18.01 | 15.72 | 1,262.20 | 1,085.60 | 16.27 | | Telecom Equipment Manufacturer | 0.00 | 0.00 | 0.00 | - | | IT | 82.84 | 1,673.80 | 1,794.60 | -6.73 | 84.28 | 6,766.40 | 6,934.40 | -2.42 | | Total PBIT | 100.00 | 2,020.50 | 2,088.40 | -3.25 | 100.00 | 8,028.60 | 8,020.00 | 0.11 | | Less : Interest | | 93.40 | 55.20 | 69.20 | | 325.60 | 162.60 | 100.25 | | Add: Other un-allcoable | | -402.20 | -159.90 | -151.53 | | -1,257.50 | -405.30 | -210.26 | | PBIT Margin(%) | | BPO | | 18.05 | 19.28 | -123.22 | | 17.55 | 19.88 | -233.23 | | Telecom Equipment Manufacturer | | 0.00 | 0.00 | 0.00 | | IT | | 14.19 | 16.94 | -275.41 | | 14.68 | 17.70 | -301.79 | | PBT | 100.00 | 1,524.90 | 1,873.30 | -18.60 | 100.00 | 6,445.50 | 7,452.10 | -13.51 |
|
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