Tech Mahindra Limited has announced its audited consolidated financial results for its first quarter ended (QE) June 30, 2020.

Financial highlights for the quarter (Rs)

  • Revenue at Rs 91.06 billion; down 4.0 per cent quarter-on-quarter basis (QoQ), up 5.2 per cent year-on-year(YoY)
  • Earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 13.01 billion; down 3.5 per cent QoQ
  • Margins at 14.3 per cent; up 10bps QoQ
  • Profit after tax (PAT) at Rs 9.72 billion; up 20.9 per cent QoQ
  • Earnings per share (EPS) was at Rs 11.07

Other Highlights

  • Total headcount at 123,416; down 1,820 QoQ
  • Active Clients stood at 981 in first quarter (Q1) 2021, up by 8 QoQ
  • Cash and Cash Equivalent at $1,378.4 million as of June 30, 2020

Commenting on the results, CP Gurnani, managing director (MD) and chief executive officer (CEO), Tech Mahindra, said,  “Our customer centric approach and continued focus on keeping our associates safe and connected has helped us to navigate through these challenging times successfully. We are witnessing a wave of new age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation. We are well positioned to capture such spends and our endeavor is to be back on the growth path amid increased signs of demand normalisation.”

Further, Manoj Bhat, chief financial officer (CFO), Tech Mahindra, said, “Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimisation. Cash conversion has been strong, while we aim to improve profitability margins as demand normalises.”

Key Wins
  • Engaged by one of the largest healthcare provider in the US as a managed service partner for IT operations
  • A leading Communications Service Provider (CSP) based in UK has selected Tech Mahindra to enhance its operational systems leveraging next-gen Data and Analytics
  • Tech Mahindra won a deal with a global leader in sustainable and innovative fibre solutions to provide end-to-end managed services for plant Infrastructure across the organisation
  • Engaged by a leading US telecom provider for cloud migration and application support
  • Engaged by a leading North American security and VPN (Virtual Private Network) solution provider to enhance its customer experience globally leveraging Artificial Intelligence and Machine Learning
  • Signed a deal with a network service provider in Japan for implementation and support of the digital billing support system (BSS)
  • Engaged by a South African administrative division for SAP support and application maintenance
  • Tech Mahindra has been selected by a leading American telecom player as an Automation partner for AIOps implementation and platform development.
  • Tech Mahindra won a deal with a new age Electric Vehicle Manufacturer for complete vehicle engineering leveraging its strong domain expertise
  • Signed a multi- year deal with by an Asian public sector bank for Infrastructure implementation and support
Business Highlights
  • Tech Mahindra and IBM have collaborated to help businesses transform their operations and accelerate their hybrid cloud strategies. Tech Mahindra will help clients migrate core business applications to the IBM public cloud using IBM Cloud Paks.
  • Tech Mahindra and ChampTrax Technologies, a Canadian sports startup have collaborated to develop a solution to create stadium like-experience at home for global sports fans.
  • Tech Mahindra and Openet, a leader in the supply of digital business support system (BSS) solutions, have entered into a global strategic partnership to enable digital transformation for customers globally by leveraging 5G and cloud technologies.
  • Tech Mahindra has signed a joint declaration with UN Global Compact urging governments to align their COVID-19 recovery efforts with the latest climate science.
  • Tech Mahindra launched mPAC 3.0 (Managed Platform for Adaptive Cloud), next-generation cloud management platform for enterprises globally. This will assist enterprises to transform their businesses by accelerating their time to market and ensuring cost optimisation across verticals.
  • Tech Mahindra and Lucideus, a global leader in cyber risk quantification solutions have entered into a strategic collaboration to conduct annual cybersecurity risk assessment, aimed at bringing the most advanced cyber risk quantification solutions to customers globally, and transform the way businesses monitor cybersecurity currently.