Tech Mahindra Announces its Financial Results

Tech Mahindra Ltd announced the audited consolidated financial results for its fourth quarter and year ended March 31, 2017

Financial highlights for the quarter (₹)

• Revenue at ₹ 7,495 crore; up 8.9% YoY & down 0.8% QoQ (up 0.9% in CC terms)
• EBITDA at ₹ 899 crore; down 21.9% YoY and 24.3% QoQ; margins at 12.0%
• Profit after tax (PAT) at ₹ 588 crore; down 31.2% YoY and 31.2% QoQ
• Earnings per share (EPS), was ₹72 for the quarter ended March 31, 2017

Financial highlights for the quarter (USD)

• Revenue at USD 1,131.2 Mn; up 10.6% YoY and 1.3% QoQ
  • In constant currency (CC) terms, revenue up 12.1% YoY and 0.9% QoQ
• EBITDA at USD 136.7 Mn; down 20.2% YoY and 21.9% QoQ
• Profit after tax (PAT) at USD 89.1 Mn; down 30% YoY and 29.3% QoQ

Financial highlights for the year (₹)

• Revenue at ₹ 29,141 crore; up 10% YoY
• EBITDA at ₹ 4,184 crore; down 2.0% YoY; margins at 14.4%
• Profit after tax (PAT) at ₹ 2,813 crore; down 6.0% YoY
• Earnings per share (EPS) was at ₹1 for the year ended March 31, 2017
• The Board has proposed a dividend of ₹ 9 /- per share (180%) on the face value of  ₹ 5 per share
• DSO of 95 days for the year ended March 31, 2017

Financial highlights for the Year (USD)

• Revenue at USD 4,351.1 Mn; up 7.8% YoY
• EBIDTA at USD 625.3 Mn; down 3.7% YoY
• Profit after tax (PAT) at USD 419.5 Mn down 7.8% YoY

Other Highlights

• Total headcount as of March 31, 2017 at 117,693
• Cash & cash eq. at ₹ 5,383 crore as of March 31, 2017; up 183 crore YoY
• Active client count stood at 843 vs. 807 in FY 16

“Information Technology, the world over is going through a major shift with demand patterns changing constantly. Most businesses are also battling the geopolitical uncertainties and as a Digital Transformation company, we see these as huge opportunities in the future. Our clients are approaching us with more problems to solve than ever before – that is definitely a happy problem to deal with,” said Vineet Nayyar, Vice Chairman, Tech Mahindra.

“The industry is going through a paradigm shift amid changing demand pattern from the clients, technological changes and requirement for significant skill enhancement. We have responded to those changes quite proactively by reimagining the business, imbibing a culture of innovation encouraging reskilling and retraining of our workforce wherever necessary,” said CP Gurnani, Managing Director & CEO of Tech Mahindra.

“We strongly believe we have embarked on the right path ‎but this is a journey. We believe our ability to serve the customers across ‘Run’, ‘Change’, and ‘Grow’ embracing DAVID (Digitalization, Automation, Verticalization, Innovation and Disruption) in every conversation, with the objective of providing the right kind of experiences will continue to make us relevant for our clients,” Gurnani added.