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 30^th, 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 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 took place from September 10 to 23 in Budapest, Hungary. The Olympiad was one of the biggest sporting events globally, with 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.