Tech Mahindra (NSE: TECHM), a global leader in technology consulting and digital solutions, announced its audited consolidated financial results for the second quarter of FY25, ended September 30, 2024. The company reported a 153% year-on-year (YoY) increase in profit after tax (PAT) to ₹1,250 crores, highlighting a strong quarter driven by revenue growth and margin expansion.
Financial Highlights (USD):
- Revenue: $1,589 million, up 1.9% quarter-on-quarter (QoQ) and 2.2% YoY.
- Revenue grew by 0.7% QoQ and 1.2% YoY in constant currency terms.
- EBITDA: $209 million, up 11.3% QoQ and 61.4% YoY, with an EBITDA margin of 13.1%, increasing by 110 basis points (bps) QoQ and 480 bps YoY.
- PAT: $149 million, showing a 46.1% QoQ rise and a 150.7% YoY growth, with a PAT margin of 9.4%, up 280 bps QoQ and 560 bps YoY.
- Free Cash Flow: $157 million.
- New Deal Wins: Total contract value (TCV) of $603 million.
Financial Highlights (INR):
- Revenue: ₹13,313 crores, up 2.4% QoQ and 3.5% YoY.
- EBITDA: ₹1,750 crores, up 11.9% QoQ and 63.2% YoY.
- Consolidated PAT: ₹1,250 crores, a 46.8% QoQ increase and a 153.1% YoY surge.
- Earnings Per Share (EPS): ₹14.10.
Other Highlights:
- The total headcount at the end of Q2 stood at 154,273, an increase of 6,653 employees QoQ and 3,669 YoY.
- IT attrition on a last-twelve-months (LTM) basis was 10.6%.
- Days of sales outstanding (DSO) reached 94 days, up by one day QoQ but down by three days YoY.
- Cash and cash equivalents at the end of the quarter amounted to ₹6,566 crores.
- An interim dividend of ₹15 per share was declared.
Management Commentary:
Mohit Joshi, Chief Executive Officer and Managing Director of Tech Mahindra, stated, “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, added, “This quarter, we saw consistent performance around increasing deal wins, revenue growth, cost optimization, and steady free cash flow generation. In line with our capital allocation policy, the board has declared an interim dividend of ₹15 per share.”
