Tech Mahindra’s Q2FY24 Result Highlights

Tech Mahindra’s revenue fell 2% YoY
  • 26 Oct 2023
  • Tech Mahindra reported 2% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter ended September (Q2FY24). On a year-on-year (YoY) basis too, it witnessed a decline of 2%.
  • Its expenses for the quarter were up by 1% QoQ and 7% YoY.
  • The net profit de-grew 28% QoQ and 61% YoY.
  • The earnings per share (EPS) of Tech Mahindra stood at 5.6 during Q2FY24.
(Rs, crores) Q2FY23 Q1FY24 Q2FY24 QoQ (%) YoY (%)
Total income13,42013,35113,128-2%-2%
Total expenses11,74112,38712,5041%7%
Profit before tax1,664971615-37%-63%
Profit after tax1,299704505-28%-61%
Earnings per share14.57.85.6

Key Result Highlights:

Declaration of Interim Dividend

  • The company, in its recently concluded Board Meeting, declared an interim dividend of Rs. 12/- per equity share of Rs. 5/- each. This comes to around 240% of the face value.
  • It has fixed Thursday, 02nd November, 2023, as the Record Date for determining the members entitled to receive the Interim dividend and the same would be paid on Tuesday, 21st November, 2023 to the equity shareholders whose names appear on the Register of Members.

Segment Performance

  • The company’s Communication, Media & Entertainment (CME) segment contributed 37% of the overall revenues and it was down by 11.5% on a YoY basis.
  • Manufacturing segment contributed 17.8% of the overall revenues and it was up by 5.7% on a YoY basis.
  • Its Technology segment contributed 11.0% of the overall revenues and it was up by 2.8% on a YoY basis.
  • Banking, Financial Services, & Insurance segment contributed 16.1% of the overall revenues and it was down by 6.3% on a YoY basis.

Total Headcount Rises

  • Total headcount for Tech Mahindra stood at 150,604 during the quarter. This was up by 2,307 on a quarter-on-quarter (QoQ) basis. Cash & Cash Equivalent
  • The company’s Cash and Cash Equivalent stood at Rs 6,515 crore as of September 30, 2023.

New Deal Wins

  • The company saw US$ 640 million worth of new deal wins during the quarter as compared to US$ 359 million worth of new deals in the preceding quarter. Free Cash Flows
  • The company’s Free Cash Flows stood at US$ 213 million.

Merger Update

  • The Board also approved the Scheme of Merger by absorption of its wholly owned subsidiaries i.e. Perigord Premedia (India) Private Limited (PPIPL), Perigord Data Solutions (India) Private Limited (PDSIPL) and Tech Mahindra Cerium Private Limited (TMCPL), with the company and their respective shareholders under section 230 to 232 and other applicable provisions of the Companies Act, 2013.
  • The Appointed Date of the Scheme would be 1st April, 2024 or such other date as may be directed or approved by the jurisdictional National Company Law Tribunal (NCLT) or any other appropriate authority.
  • The entire assets and liabilities of PPIPL, PDSIPL and TMCPL will be transferred to and recorded by Tech Mahindra at their carrying values.

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

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