Tech Mahindra Limited has announced the audited consolidated financial results for its quarter ended September 30, 2021.

Financial highlights for the quarter (USD)

The company reported revenue of $1472.6 million, an increase of 6.4 per cent quarter over quarter (QoQ) and 16.4 per cent year over year (YoY). In constant currency terms, revenue grew 7.2 per cent quarter over quarter. In Q3 and year-to-date, EBITDA surged by 6.1 per cent and 17.2 per cent respectively. The margin was 18.3 per cent. Profit after tax (PAT) was $181 million, down 1.2 per cent QoQ and up 26.0 per cent YoY. The free cash flow for the quarter was $187.9 million, and the conversion to PAT was 103.8 per cent.

Financial highlights for the quarter (Rs).

The company generated revenues of 10.881 billion, up 6.7 per cent QoQ and 16.1 per cent YoY. EBITDA at Rs 19.95 billion; an increase of 6.3 per cent QoQ and 17.2 per cent YoY. The consolidated PAT came in at Rs 13.39 billion, up 25.8 per cent YoY. The Board of Directors has proposed a special dividend of Rs 15/- per share (300 per cent

Other Highlights

The total headcount stood at 141,193, an increase from 14,930 QoQ. The Cash and Cash Equivalent stood at $1626 million as of September 30, 2021
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Commenting on the development, CP Gurnani, managing director and chief executive officer, Tech Mahindra, said, “As we record our highest sequential growth in a decade, we remain committed to delivering long-term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships. We continue to accelerate our clients’ digital journey by creating Human Centric Experiences, helping them gear up for tomorrow, today.”

Meanwhile, Milind Kulkarni, chief financial officer, Tech Mahindra, said, “Our strong execution has ensured that we maintain our profit margins while accelerating growth momentum. We remain committed on the operational excellence journey we have boarded, and continue to create value to shareholders through efficient capital return”

Acquisitions

Tech Mahindra has announced the acquisition of Lodestone, a leading digital engineering quality assurance provider for new-age digital companies. The acquisition will bolster Tech Mahindra’s digital engineering capabilities to effectively utilise data strategy and address machine learning challenges. The strategic announcement will further enhance Tech Mahindra’s capability to provide end-to-end product quality assurance across hardware, software, and data layers to strengthen the company’s positioning as a leading digital transformation enabler in the engineering space.

Commenting on the development, Vivek Agarwal, president – BFSI, HLS and corporate development, Tech Mahindra, said, “The acquisition of Lodestone is in line with our strategy to strengthen digital capabilities and provide enhanced and comprehensive transformation services to our customers globally. This will bring significant synergies to complement our domain expertise and will help drive growth going forward. We welcome Lodestone’s associates into the Tech Mahindra family”.