Mumbai – Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industries announced the audited consolidated financial results for its quarter ended September 30th, 2024.

Financial highlights for the quarter (USD)

  • Revenue USD 1,589 mn; up 1.9% QoQ, up 2.2% YoY
    • Revenue grew by 0.7% QoQ, up by 1.2% YoY in constant currency terms
  • EBITDA USD  209 mn; up 11.3% QoQ, up 61.4% YoY
  • EBITDA Margin 13.1%, up 110 bps QoQ, up 480 bps YoY
  • Profit after tax (PAT) USD 149 mn; up 46.1% QoQ, up 150.7% YoY
  • PAT Margin 9.4%, up 280 bps QoQ, up 560 bps YoY
  • Free cash flow USD 157 mn
  • New deal wins TCV USD 603 mn

Financial highlights for the quarter (₹)

  • Revenue ₹ 13,313 crores; up 2.4% QoQ, up 3.5% YoY
  • EBITDA ₹ 1,750 crores; up 11.9% QoQ, up 63.2% YoY
  • Consolidated PAT ₹ 1,250 crores; up 46.8% QoQ, up 153.1% YoY
  • Earnings per share (EPS) ₹ 14.10

 

Other Highlights

  • Total headcount at the end of the quarter 154,273, up 6,653 QoQ and 3,669 YoY
  • LTM IT attrition 10.6%
  • Days of Sales Outstanding 94 days; up 1 day QoQ, down 3 days YoY
  • Cash and Cash Equivalent at the end of the quarter ₹ 6,566 crores
  • Interim dividend declared ₹ 15 per share                 

Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said,

“We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, said,

“This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimization and steady free cashflow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy the board has declared an interim dividend of Rs. 15 per share.”

Key Wins

  • Tech Mahindra opened a new logo with one of the largest US based Cards & Payments services provider for an AI-Ops based production management for the bank's applications in addition to a tech modernization program across ADMS, Data and Cloud & Infra engineering, making TechM the “Change the Bank” partner of the client.
  • Tech Mahindra was selected by a leading European CSP for an Autonomous Operations Program, enabling them to provide best CX and transform into a highly digitally mature and innovative operator by leveraging TechM’s Network Services, ADMS and AI capabilities for its business, IT and workforce transformation.
  • Tech Mahindra set up a strategic partnership with a Telco in Europe to Europe to collaborate on improving time to market, quality and operational efficiency. Tech Mahindra to support the BSS and OSS landscape and set up a central transformation office to drive continuous improvement across the organisation.
  • Tech Mahindra opened a new logo with a European bank for a Temenos T24 implementation program to modernise the current core banking platform and provide ongoing support post implementation.
  • Tech Mahindra was selected by a Canadian Communications, Media and Technology company for a managed services deal to deliver customer experience and support services, eventually supporting all lines of the customers business through the lifecycle of the contract.
  • Tech Mahindra was selected by Australia’s leading telecommunications company to deliver customer experience services that enhances their journey to digital excellence and achieves industry leading customer excellence.

Business Highlights

  • Tech Mahindra announced a strategic partnership to boost generative AI (gen AI) adoption and lead digital transformation for various entities of Mahindra & Mahindra (M&M). Tech Mahindra will leverage artificial intelligence (AI) and machine learning (ML) technologies to enhance various aspects of engineering, supply chain, pre-sales, and after-sales services for M&M. Tech Mahindra will also lead the cloud transformation and digitization of M&M’s workspace and deploy M&M's data platform on Google Cloud.
  • Tech Mahindra announced the launch of TechM VerifAI, a comprehensive solution for validating and verifying the outcomes of Artificial Intelligence (AI) and GenAI projects. Through this solution, Tech Mahindra will help enterprises validate the end-to-end lifecycle of AI-based projects, thereby, enabling them to scale their AI initiatives speedily.
  • Tech Mahindra announced a collaboration with Microsoft to modernize workplace experiences with Copilot for Microsoft 365 for its customers and an initial 10,000+ employees across 15 locations. The collaboration positions Tech Mahindra as a leading Global Systems Integrator (GSI) adopting Copilot for Microsoft 365.
  • Temenos signed an agreement with Tech Mahindra to provide a core banking offering on Temenos SaaS specifically designed for Electronic Money Institutions (EMIs) in the UK and Europe. EMIs will benefit from faster time to market, lower operational costs, scalable architecture, and access to over 100 curated Temenos Exchange fintech partners, to offer customized and differentiated services to their end customers.
  • Tech Mahindra announced a strategic partnership with Discai to deliver a comprehensive, AI-powered Anti-Money Laundering (AML) solution that is developed, tested and validated to enhance transaction monitoring and ensure regulatory compliance for financial institutions by combining Tech Mahindra’s extensive IT integration experience with Discai’s state-of-the-art Artificial Intelligence (AI) and rule-based AML technology to offer financial institutions a reliable, compliant, and seamlessly integrated AML solution.
  • Tech Mahindra signed a MOU with Marshall Group, to support Marshall’s engineering programs in aircraft design and manufacture, special mission platforms, and for the development of digital MRO technologies. Marshall will leverage Tech Mahindra’s expertise in data analytics and intelligent field support technologies to enhance its infrastructure solutions operational efficiency and reliability.
  • Tech Mahindra announced a strategic partnership with Horizon3.ai to elevate the cybersecurity landscape. The partnership will integrate Horizon3.ai's cutting-edge NodeZero™ platform, delivering integrated threat detection, AI-powered pentesting, and Governance, Risk, and Compliance (GRC) insights, with Tech Mahindra's comprehensive suite of cybersecurity services.
  • Tech Mahindra and LivePerson Inc. announced a partnership to transform customer engagement in the financial services and HLS (Healthcare and Life Sciences) industries. The partnership will address the unique challenges and opportunities by combining LivePerson's cutting-edge conversational platform and AI technology with Tech Mahindra BPS extensive domain expertise.
  • Tech Mahindra announced the expansion of its BPS business in the Baltic States with a new centre in Riga, Latvia. The expansion will help Tech Mahindra bolster its presence in Europe, providing local and regional customers with direct access to its comprehensive range of services.
  • Tech Mahindra signed a MOU with the University of Auckland (UoA) to accelerate research and innovation in artificial intelligence (AI), machine learning (ML), and quantum computing across various industries, including healthcare, banking, financial services, and insurance. This also includes cooperation with the government sector. Tech Mahindra and UoA's collaboration will enhance the cooperation between industry and academia, with the goal of improving UoA graduates' employability.
  • Tech Mahindra signed a MOU with Northeastern University to accelerate innovation in Open Radio Access Networks (ORAN) and 6G connectivity. The collaboration will focus on the R&D and testing of next-generation wireless networks for global customers. Tech Mahindra and Northeastern University will develop industry-leading solutions in ORAN and 6G, focusing on large-scale testing and certification of the ORAN ecosystem by leveraging Tech Mahindra’s deep domain expertise in telecom, and Northeastern University's Open6G Open Testing and Integration Center (OTIC).
  • Tech Mahindra announced its association with the 45th Chess Olympiad by FIDE (International Chess Federation) as the General Sponsor, which is set to take place from September 10 to 23 in Budapest, Hungary. The Olympiad was one of the biggest sporting events globally, having 196 teams competing in the Open Section and 184 teams in the Women's Section. In addition, Tech Mahindra and FIDE have been revolutionising the historic game through various initiatives over the years, one such initiative being the Global Chess League, a unique joint venture with FIDE launched in 2023.

Awards and Recognitions

  • Tech Mahindra won the 2024 Oracle Best in Class Innovation Partner Award for Apps Service Partners
  • Tech Mahindra’s Populii awarded Frost & Sullivan’s 2024 Global Competitive Strategy Leadership Award for revolutionising crowdsourcing with its gig economy solution
  • Tech Mahindra recognised amongst the ‘Best Tech Brands 2024’ by ET NOW
  • Tech Mahindra ranked #1 in BusinessWorld's ‘Most Sustainable Companies Sectoral List 2024’
  • Tech Mahindra continues to be a constituent of the ‘FTSE4Good Index Series’ for 8th consecutive year
  • Tech Mahindra recognised as one of the ‘World’s Top 50 Most Sustainable Businesses’ at SEAL 2023 Business Sustainability Awards
  • Tech Mahindra recognised amongst ‘World's Most Trustworthy Companies 2024’ by Newsweek & Statista
  • Tech Mahindra recognised amongst ‘Most Preferred Workplace for Women 2024-25’ by Team Marksmen
  • Tech Mahindra recognised as one of the ‘Most Trusted Companies 2024’ at The Infotech Forum 2024 by VAR India
  • Tech Mahindra received an award for 'Excellence in Health & Safety Initiatives' at BW People HR Excellence Awards 2024

Analyst Ratings & Recognitions

  • Tech Mahindra recognised as Leader - Avasant Telecom Digital Services 2024
  • Tech Mahindra placed in Leadership Zone by Zinnov for Digital Engineering and ER&D Services – Overall, Digital Engineering Services, Experience Engineering, Data & AI, Generative AI Engineering Services
  • Tech Mahindra placed in Leadership Zone by Zinnov for Digital Engineering and ER&D Services - Hyperscalers (AWS, GCP, Azure) and Hyperscaler Services
  • Tech Mahindra placed in Leadership Zone by Zinnov for Digital Engineering and ER&D Services - EV, Aerospace, Enterprise Software, Consumer Software, Software Platform, Industrial, Medical Devices, Telecommunications, Semiconductor, Industry 4.0
  • Tech Mahindra placed in Leadership Zone by Zinnov for Digital Engineering and ER&D Services – US, Europe
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024- US-Supply Chain IT Operations Services by ISG
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024 - US-Supply Chain BPO Services by ISG
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024 - Contact Center - Customer Experience Services 2024’. -US-Intelligent CX (AI & Analytics) by ISG
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024 - Contact Center - Customer Experience Services 2024’. -Global -Digital Operations by ISG
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024 - Contact Center - Customer Experience Services 2024’. -Europe-Intelligent Agent Experience by ISG
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024 - Contact Center - Customer Experience Services 2024’. -Australia-Digital Operations by ISG
  • Tech Mahindra recognised as Leader - Supply Chain Services 2024 - Australia Intelligent Operations by ISG
  • Tech Mahindra positioned as Service Leader in the 2024 SPARK Matrix™ Contact Centre Outsourcing Services
  • Tech Mahindra recognised as a Challenger in Gartner's 2024 Magic Quadrant for Public Cloud IT Transformation Services
  • Tech Mahindra recognised as Major Contender by Everest’s Life & Annuity (L&A) Insurance IT Services PEAK Matrix® Assessment 2024
  • Tech Mahindra recognised as Major Contender by Everest’s Guidewire Services PEAK Matrix® Assessment 2024

About Tech Mahindra

Tech Mahindra (NSE: TECHM) offers technology consulting and digital solutions to global enterprises across industries, enabling transformative scale at unparalleled speed. With 150,000+ professionals across 90+ countries helping 1100+ clients, Tech Mahindra provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services. It is the first Indian company in the world to have been awarded the Sustainable Markets Initiative’s Terra Carta Seal, which recognises global companies that are actively leading the charge to create a climate and nature-positive future. Tech Mahindra is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federation of companies. For more information on how TechM can partner with you to meet your Scale at Speed™ imperatives, please visit https://www.techmahindra.com

For Further Queries:

Bhairvi Selarka

Head - Investor Relations
Email: bhairvi.selarka@techmahindra.com

 

Rushabh Jain

Associate Manager - Investor Relations
Email: rushabhrajiv.jain@techmahindra.com

Abhilasha Gupta

Head – Global Corporate Communications & Public Affairs
Email:  abhilasha.gupta@techmahindra.com

 

Leah Jena

Sr. Business Associate - Corporate Communications

Email: leah.jena@techmahindra.com

investor.relations@techmahindra.com

media.relations@techmahindra.com

Disclaimer

Certain statements in this release concerning the future prospects of Tech Mahindra Limited (“the Company” or “Tech Mahindra”) are forward-looking statements. These statements by their nature involve risks and uncertainties that could cause Company’s actual results differ materially from such forward-looking statements. The Company, from time to time, makes written and oral forward-looking statements based on information available with the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

Consolidated Financial Statement for the second quarter ended September 30, 2024 drawn under Ind AS