Tech Mahindra rallies over 7% post Q1 results
The scrip traded 7.46% higher at Rs 1211.90 at around 9.47 am (IST). On the other hand, the benchmark BSE Sensex was up 101 points, or 0.19% at 52,754
Shares of Tech Mahindra climbed over 7% in Friday’s early trade after the company on Thursday reported a 30.77% jump in consolidated net profit to Rs 1,365.70 crore in Q1 June 2021 (Q1 FY22) over Rs 1,044.30 crore in Q4 March 2021 (Q4 FY21).
Consolidated revenue from operations grew 4.80% to Rs 10,197.60 crore in Q1 June 2021 from Rs 9,729.90 crore in Q4 March 2021. Profit before tax surged 16.20% to Rs 1,794.30 crore in Q1 FY22 as against Rs 1,544.10 crore in Q4 FY21. The Q1 result was declared after trading hours today, 29 July 2021.
The scrip traded 7.46% higher at Rs 1211.90 at around 9.47 am (IST). On the other hand, the benchmark BSE Sensex was up 101 points, or 0.19% at 52,754 at around the same time.
Consolidated EBITDA stood at Rs 1,876.40 crore during the quarter, falling 3.7% QoQ (quarter-on-quarter) from Rs 1,948.10 crore in Q4 FY21 and up 44.3% YoY (year-on-year) from Rs 1,300.50 crore in Q1 FY21. EBITDA margin improved to 18.4% in Q1 FY22 from 14.3% in Q1 FY21 while it registered a margin of 20% in Q4 FY21.
In terms of dollars (USD), revenue was at $1,383.60 million in Q1 FY22; growing 4.1% QoQ and 14.6% YoY. Revenue growth stood at 3.9% QoQ in constant currency terms. EBITDA was at $254.30 million; slipping 4.4% QoQ in Q4 FY21 and up 47.5% Y-o-Y from Q1 FY21. Margins stood at 18.4%, falling 160 bps on a sequential basis. Profit after tax (PAT) was at $183.20 million; rising 24.1% Q-o-Q and 42.2% YoY. Free cash flow stood at $172.40 million with a conversion to PAT at 94.1%.
The total headcount at Tech Mahindra was 1,26,263 in Q1 FY22 as against 1,23,416 in Q1 FY21 and 1,21,054 in Q4 FY21. The firm secured total net new deals worth $815 million in Q1 FY22 as compared to $290 million in Q1 FY21 and $1,043 million in Q4 FY21. The IT attrition rate stood at 17% in Q1 FY22 as well as in Q1 FY21 and 13% in Q4 FY21. Cash and cash equivalent stood at Rs 13,514.60 crore as of 30 June 2021 over Rs 10,408.30 as of 30 June 2020 and Rs 13,019.90 crore in 31 March 2021.
Commenting on the Q1 results, C P Gurnani, the managing director (MD) and chief executive officer (CEO) of Tech Mahindra, has said that: We have witnessed an all rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation. Our focus on key technology pillars wrapped around experience-led approach with TechM Nxt.Now will help us to capitalize on the strong demand momentum.
Milind Kulkarni, the chief financial officer (CFO) of Tech Mahindra, stated that: We continue to build on our profitability journey and have reported highest ever quarterly Revenue and Profit After Tax this quarter. Delivery Excellence will be a cornerstone in improving our operational and financial metrics, as we look to capitalize on the incremental digital spends over the course of the year.
Tech Mahindra is engaged in the business of computer programming, consultancy and related services.
(With inputs from Capital Market – Live News)