Mumbai – July 26th, 2023: Tech Mahindra Ltd., a specialist in digital transformation, consulting and business re-engineering services today announced the audited consolidated financial results for its quarter ended June 30th, 2023.
Financial highlights for the quarter (USD)
- Revenue at USD 1,601 mn; down 4.0% QoQ, down 1.9% YoY
- Revenue reduced by 4.2% QoQ in constant currency terms
- EBITDA at USD 163 mn; down 33.7% QoQ, down 31.8% YoY; Margin at 10.2%, down 460bps QoQ
- Profit after tax (PAT) at USD 84 mn; down 38.0% QoQ, down 41.1% YoY
- Free cash flow at $ 106 mn, conversion to PAT at 126%
Financial highlights for the quarter (₹)
- Revenue at ₹ 13,159 crores; down 4.1% QoQ, up 3.5% YoY
- EBITDA at ₹ 1,338 crores; down 33.8% QoQ, down 28.8% YoY
- Consolidated PAT at ₹ 693 crores; down 38.0% QoQ, down 38.8% YoY
- Earnings per share (EPS) was at ₹ 7.82
Other Highlights
- Total headcount at 148,297 down 4,103 QoQ
- Cash and Cash Equivalent at INR 7,701 cr as of June 30, 2023
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said,
“Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long- term value for our customers and shareholders.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said,
“This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution.”
Key Wins
- Tech Mahindra was selected as a strategic partner by a large telecommunications operator in America to assist in the Cloud migration of ML platform; implement predictive analysis program to personalize Sales and Market Retention recommendations for the client by leveraging big data analytics and microservices development.
- Tech Mahindra was chosen by one of the largest tyre manufacturers in the world for its end-to-end enterprise process transformation. Tech Mahindra will be revamping core processes from Lead to Cash to Foreign Trade in what will be one of the largest strategic transformations in Europe.
- Tech Mahindra won a multiyear strategic deal from a leading Networking OEM in America for managing their public cloud operations, including various workloads for its fast-growing AI-based SaaS offerings, and for its upcoming Data & Cloud-based offerings of its Engineering and IT units.
- Tech Mahindra was selected by a large retail player in the US for Service desk management leveraging AI and bot first transformative technology with built-in quality automation.
- Tech Mahindra was selected as a strategic partner by one of the leading technology companies in the world to augment AI capability by managing machine rewrites and content validation.
Business Highlights
- Tech Mahindra has announced an integration with Microsoft to enable Generative AI-powered Enterprise Search. The new offering, Generative AI-Powered Enterprise Knowledge Search under Tech Mahindra’s TechM amplifAI0->∞ integrates Microsoft Azure OpenAI Service, Azure Cognitive Search, and Azure Language understanding to increase effectiveness and personalization enabling capabilities like content summarization, knowledge graph-led knowledge structuring, and a new kind of query interface.
- Tech Mahindra and Espressive, partner to provide automated and cost-effective digital workplace assistance. The partnership will enhance the overall employee experience of their customers by automating requests in real-time through an AI-based virtual support agent, Espressive Barista. The platform’s advanced Natural Language Processing (NLP), Natural Language Understanding (NLU), and machine learning capabilities will ensure responses are highly personalized to reassure employees that their requests have been fully understood and resolved in real-time.
- Global Chess League, a joint venture between FIDE and Tech Mahindra, will be the world’s largest and first-ever league-style chess tournament. The inaugural edition which took place in Dubai from 21st June to 2nd July’23, featured six teams with six players each including a minimum of two female players and one Icon player per team. World Champions like Viswanathan Anand, Magnus Carlsen, Ding Liren and Hou Yifen were part of the tournament.
- Tech Mahindra and IndoSat launched a Center of Excellence (CoE) lab powered by Google Cloud in Jakarta to accelerate Indonesia’s digital transformation. This will harness advanced next-gen capabilities like 5G, Edge computing, Data analytics, Internet of Things, Augmented Reality and Virtual Reality. Lab seeks to provide intelligent analytics to CSPs through hyper-personalized offerings throughout customer journey.
- Tech Mahindra and Mahindra Lifespace Developers, partnered to drive innovation in PropTech platform. The platform will provide first-of-its-kind photo realistic and fully immersive 3d-experiences to home buyers by generating images of a complete home environment, in near real manner using Epic Games Unreal Engine 5.
- Tech Mahindra unveiled Generative AI studio under its amplifAI0->∞ suite of AI offerings. The studio will be a one-stop-central providing customers with both structured and customized aspects of AI, bringing all six aspects of content generation – code, document/text, image, video, audio, and data – under one roof. The studio is also scalable, making it suitable for businesses of all sizes.
- Tech Mahindra and EarthID, an award-winning decentralized Identity management platform, announced a strategic partnership to create a blueprint for Self-Sovereign Identity (SSI) powered Metaverse platform that will provide users control over their data through privacy & consent. SSI- powered Metaverse will empower enterprises to mitigate security concerns related to stolen identities and sensitive data, which may lead to huge legal and financial losses.
Awards and Recognitions
- Tech Mahindra was ranked #1 amongst the top 25 IT companies and ranked #2 in the list of top 50 most sustainable companies in the country at the Business World Sustainability Conclave 2023.
- Tech Mahindra has been recognized as a Leader in Enterprise Service Management – Services & Solutions, Quadrant in ISG Provider Lens™ “Enterprise Service Management – Services and Solutions” 2023 report for the U.S. geography.
- Tech Mahindra has been identified as a Top Performing Business Partner – Managed Service Provider for the year 2022 at the ‘IBM Partner Connect & Awards 2023’.
- Tech Mahindra was honored with the Best Application Support & Program Delivery Award 2023 by the Environment Agency of Emirates of Abu Dhabi
- Tech Mahindra was positioned as the #3 Strongest Brand in the IT Services Industry for 2023 in the Brand Finance India 100 report.
- Tech Mahindra was recognized as a Leader in the 2022 Gartner Magic Quadrant for IT Services for communications service providers for the fourth consecutive year.
- Tech Mahindra was recognized as one of “Iconic Innovator 2023”by The Economic Times. The recognition highlights Tech Mahindra’s innovation process and the key factors that contributed to success, including leadership, culture, collaboration, and risk-taking capabilities.
- Tech Mahindra was recognized as a 2023 Intel Partner Award winner for Breakthrough Innovation – SI/CSP- Cloud BlazeTech
- Tech Mahindra was recognized as Champions at the People First HR Excellence Awards for Best POSH Strategy (Safe Place to Work) and for ‘Leading Practices’ in Diversity & Inclusion Initiatives.
- Tech Mahindra has been awarded the ‘Best Core Banking Solutions Provider’ in the MEA Finance Banking Technology Summit and Awards 2023
- Tech Mahindra was recognized for working towards ‘Social Inclusion of PwD by BW People & Ask Insights Disability Positive Award’ under the ‘Social Inclusion for PwD’ category.
About Tech Mahindra
Tech Mahindra offers innovative and customer-centric digital experiences, enabling enterprises, associates, and society to Rise for a more equal world, future readiness, and value creation. It is a USD 6.5+ billion organization with 148,000+ professionals across 90 countries helping 1250+ global customers, including Fortune 500 companies. It is focused on leveraging next-generation technologies including 5G, Metaverse, Blockchain, Quantum Computing, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers. It is the only Indian company in the world to receive the HRH The Prince of Wales’ Terra Carta Seal for its commitment to creating a sustainable future. It is the fastest growing brand globally in ‘brand value rank’ and among the top 7 IT brands globally in brand strength with AA+ rating. With its NXT.NOWTM framework, Tech Mahindra aims to enhance ‘Human Centric Experience’ for its ecosystem and drive collaborative disruption with synergies arising from a robust portfolio of companies. It aims at delivering tomorrow’s experiences
today and believes that the ‘Future is Now’.
Tech Mahindra is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federation of companies with 260,000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology, and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate. The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.
Connect with us on www.techmahindra.com
Consolidated financial for the First quarter ended June 30, 2023 drawn under Ind AS
| P&L in INR Mn | Q1 FY24 | Q4 FY23 | Q1 FY23 |
| Revenue | 131,590 | 137,182 | 127,079 |
| Cost of Services | 97,805 | 97,484 | 91,162 |
| Gross Profit | 33,785 | 39,698 | 35,918 |
| SG&A | 20,405 | 19,493 | 17,116 |
| EBITDA | 13,380 | 20,205 | 18,801 |
| Other Income | 1,917 | 3,055 | 1,221 |
| Interest Expense | 1,197 | 934 | 403 |
| Depreciation & Amortization | 4,466 | 4,902 | 4,767 |
| Impairment of Goodwill and non current assets | – | 2,126 | – |
| Share of profit / (loss) from associate | 78 | (50) | 3 |
| Profit before Tax | 9,712 | 15,248 | 14,855 |
| Provision for taxes | 2,676 | 3,999 | 3,380 |
| Minority Interest | 111 | 73 | 159 |
| Profit after Tax | 6,925 | 11,176 | 11,316 |
| EPS ( ₹ / share) | |||
| Basic | 7.8 | 12.7 | 12.8 |
| Diluted | 7.8 | 12.6 | 12.8 |
CP GURNANI
Managing Director and Chief Executive Officer, Tech Mahindra
CP Gurnani (popularly known as ‘CP’ within his peer group), is the Managing Director and Chief Executive Officer of Tech Mahindra – a USD 6.5+ billion digital transformation, consulting and business reengineering services and solutions provider with 148,000+ professionals across 90 countries, helping 1250+ global customers including Fortune 500 companies. He is also the Additional Director (Non- Executive and Non-Independent Director) of Mahindra Holidays & Resorts India Limited (MHRIL).
An accomplished business leader with extensive experience in international business development, start-ups and turnarounds, joint ventures, mergers and acquisitions, CP played a pivotal role in Tech Mahindra’s transformation journey, and one of the biggest turnarounds of Indian Corporate History – the acquisition and merger of Satyam.
Living by the credo, ‘don’t work hard, work smart’, CP brings an inimitable leadership style combined with a laser-sharp focus on customer experience, which has helped Tech Mahindra emerge as one of the leading global digital transformation providers.
He strongly believes that one just cannot ride the growth path with resources that are out of sync with market dynamics. One of his many noticeable achievements in the past year has been an ambitious, company-wide initiative aimed at retraining Tech Mahindra employees to ensure they have the skills and knowledge to remain competitive and survive the age of digital transformation.
In a career spanning 40+ years, CP has held several leading positions with Hewlett Packard Ltd, Perot Systems (India) Ltd. and HCL Corporation Ltd. CP has also served as a Chairman of NASSCOM for the year 2016-2017.
He is an ardent supporter of Individual Social Responsibility, and often prods people to invest their time towards betterment of humanity and society, at large. He is on the Board of Tech Mahindra Foundation that was launched in 2007 to help the underprivileged children. He also founded ‘Titliyan’, a NGO that spearheads spreading quality education and developing life and social skills of more than 240 under privileged children.
A chemical engineering graduate from the National Institute of Technology, Rourkela, he is a distinguished and active alumnus of the Institute. CP has also been felicitated with an honorary Doctorate degree by Veer Surendra Sai University of Technology and Sharda University. He is on the Board of Mahindra & Mahindra Limited, a promoter of Tech Mahindra Limited. His passion for education is resonated in the various honorary positions he holds – He is on the board of Mahindra
Educational Institutions (MEI) & a member of the Board of Management of Mahindra University, a private university promoted by MEI to educate future citizens for and of a better world. He is also the Chairman of IIM Nagpur and the Founding Trustee of Plaksha University.
CP has been conferred with CEO’s Choice ‘Lifetime Achievement Award’ 2021 – the nation’s highest independent civilian honour – instituted by SKOCH Group and CEO’s Association for Inclusive India (CAII). He has also been featured in a Harvard Case Study on ‘Tech Mahindra and the Acquisition of Satyam Computers’.
He is the recipient of many prestigious awards including:
- ‘People-Focused CEO of the year’ award at The Economic Times Human Capital Awards 2023
- ‘Outstanding Citizens Award’ by Sindhi Chamber of Commerce
- ‘CEO of the Year’ award at the Raymond CEO Forum India Awards 2022
- ‘Most Inspiring Business Leader of Asia’ at The Economic Times Asian Business Leaders Conclave 2022
- ‘Business Icon of India’ by Zee Business in 2022
- CEO’s Choice ‘Lifetime Achievement award’ by SKOCH Group and CAII in 2021
- ‘Icon of India’ recognition by VARINDIA in 2021
- ‘Influential Leader of New India’ by CNNNews 18 in 2021
- ‘Inspiring CEO’ at The Economic Times CEO Conclave 2021
- ‘Leader of the Year’ in IT at CEO Today Magazine Middle East Awards 2021
- Business Today ‘Best CEO’ Awards (IT & ITES category) 2019
- ‘Corporate Leader of the Year’ Award – 14th (I-ACE) Awards 2018.
- Gold Winner in the ‘CEO of the Year’ for his organization’s wide reskilling initiative
- Asia One Global Indian of the Year – Technology’ in 2016
- Listed among the top 100 global CEOs as part of The Wall Street Journal CEO Council 2016 CP is highly active on social media platforms like twitter and LinkedIn and you can connect and follow him on the same –
• Twitter handle – @C_P_Gurnani
• LinkedIn profile – https://www.linkedin.com/in/cp-gurnani-b4500348/
