Tech Mahindra has announced the audited consolidated financial results for its fourth quarter (Q4) and year ended March 31, 2021.

During the year ended March 31, 2021, the company reported a revenue of $5,111.1 million, down 1.4 per cent YoY. Further, Tech Mahindra’s profit after tax (PAT) at $597.8 million, up 5.5 per cent YoY.

Further, during the Q4 ended March 2021, revenue at $1329.6 million; up 1.6 per cent QoQ. Further, PAT at USD 147.7 million; down 16.9 per cent QoQ.

 

Financial highlights for the Year (USD)                                                                                                            
  • Revenue at USD 5,111.1 million; down 1.4% YoY
  • EBITDA at USD 925.6 million; up 15.2% YoY;
    • Margins at 18.1%; up 260bps YoY
  • Profit after tax (PAT) at USD 597.8 million; up 5.5% YoY
  • Free cash flow at $ 965 million, conversion to PAT at 162%
Financial highlights for the quarter (USD)
  • Revenue at USD 1329.6 million; up 1.6% QoQ, up 2.7% YoY
    • Revenue growth at 0.7% QoQ in constant currency terms
  • EBITDA at USD 266.1 million; up 3.5% QoQ, up 45.6% YoY
    • Margins at 20.0%; up 40bps QoQ
  • Profit after tax (PAT) at USD 147.7 million; down 16.9% QoQ, up 35.5% YoY
  • Free cash flow at $ 187 million, conversion to PAT at 127%
Other Highlights
  • Total headcount at 121,054, down 847 QoQ
  • Cash and Cash Equivalent at USD 1780.9 million as of March 31, 2021

Commenting on the development, CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, said, “Our continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter.  We are witnessing a strong demand acceleration and are committed towards delivering a next-level human-centered experience of the future, Now. The health and wellness of our associates and community at large, continues to be our prime focus, as we navigate through this pandemic together.”

Further, Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said, “We have witnessed substantial margin improvement and cash flow generation this year. Our focus on delivery transformation will continue, as we increasingly witness a structural shift towards digital to adapt to the new normal. We are positioned uniquely to gain from this shift, while improving our financial and operating metrics going forward.”

 

Acquisitions
Tech Mahindra also announced the acquisition of Eventus Solutions Group, a consulting and technology service company, headquartered in the US, to bolster consulting capabilities in Customer Experience (CX) and customer management space. Eventus Solutions Group offers end-to-end customer engagement solutions, such as strategy consulting, cloud based tools and automation services, and managed services. The acquisition will enable Tech Mahindra to build an industry leading consulting practice and move up the value chain in the BPS business.

Commenting on the development, Vivek Agarwal, President – BFSI, HLS and Corporate Development, said, “Enhancing Customer Experience continues to be one of the central themes of our acquisition strategy at Tech Mahindra. The acquisition of Eventus Solutions Group will offer significant differentiation to in the rapidly growing consulting business, and will enable us to drive cross-sell and downstream revenue.”