Tech Mahindra Q1 Results FY2023, PAT at Rs. 7714 crores

On 25th July 2022, Tech Mahindra, a specialist in digital transformation, consulting, and business re-engineering services announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

In USD:

- The company reported revenue at $ 1,632 million; up by 1.5% QoQ and up 18.0% YoY 

- The revenue grew by 3.5% QoQ in constant currency terms 

- The EBITDA stood at $ 239 million; down by 13.5% QoQ, down by 6.2% YoY 

- The EBITDA margin stood at 14.8%

- The company reported its profit after tax (PAT) at $ 143 million; down by 28.0% QoQ and down by 22.0% YoY

- Free cash flow stood at $71.6 million, conversion to PAT at 50.2%

In INR:

- The company reported revenue at Rs.12,708 crores; up by 4.9% QoQ and up by 24.6% YoY.

- EBITDA stood at Rs. 1,880 crores; down by 10.0% QoQ, up by 0.2% YoY

- The company’s consolidated PAT stood at Rs.1,132 crores; down by 24.8% QoQ and down by 16.4% YoY

Business Highlights:

- Makers LabTM, the R&D arm of Tech Mahindra, launched first-of-its-kind, ‘Meta Village’, a digital twin of Pargaon in Maharashtra to gamify learning on the Roblox platform. Using Roblox, students can learn coding in Bharat Markup Language (BHAML), a platform built by Makers Lab to help code in their native language

- Tech Mahindra has collaborated with Microsoft to build SenTindra, a cloud-based virtual security operations center developed on Microsoft Sentinel. SenTindra offers a single monitoring pane with all security components integrated covering the entire lifecycle of the migration and transformation requirements for a seamless and integrated security experience for customers.

- Tech Mahindra announced a collaboration with Keysight Technologies to certify 5G equipment in its 5G 0-RAN test lab facility in New Jersey. This will enable the lab to perform end-to-end validation of designs developed by OEMs in compliance with ORAN Alliance specifications.

- Tech Mahindra launched AmplifAl- a suite of AI offerings containing its platforms GAiA, an Al & ML Ops platform; Sayint, an advanced speech analytics solution and MobiLytix, an Al-powered marketing studio to democratize & scale the deployment of Al in a responsible manner.

- Tech Mahindra has expanded its collaboration with Pegasystems driving innovative industry solutions that will help accelerate the digital transformation of customers, Through the recent synergistic acquisitions and investments, Tech Mahindra’s Pega Practice has capitalized on its innovative business solutions to address evolving customer requirements.

Commenting on the results, CP Gurnoni, Managing Director & Chief Executive Officer, Tech Mahindra, said: “We are starting this fiscal with a renewed commitment towards delivering consistent organic growth. We remain resilient and watchful given the dynamic global macroeconomic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings. Our winning strategy rests on the pillars — ‘Purpose, People and Performance’ which is aiding us to responsibly capitalize on the strong demand environment in the market.”