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Tech Mahindra Q4 FY22 Results

24 May 2022

Tech Mahindra posted its Q4 FY22 results on May 13, 2022. 

The company’s profit for the period is up 39.2% YoY (Year on Year) to Rs 1,505 crore for the quarter under review. On a QoQ (Quarter on Quarter) basis, the company’s profit for the period attributable to the owners of the company was up 10% to Rs 1,505 crore.

Tech Mahindra’s revenue from operations was up 5.8% QoQ to Rs 12,116 crore in the quarter under review. The revenue from operations was up 24.5% YoY to Rs 12,116 crore.

Tech Mahindra’s total expenses reported a sharp jump- there was a 28.5% YoY jump in the total expenses which came in at Rs 10,567 crore from Rs 8,218 crore in Q4 FY21. This was largely due to an increase in subcontracting expenses which almost doubled to Rs 1,906 crore in the quarter under review. The employee benefits expense was also up almost 29% to Rs 6,047 crore from Rs 4,695 crore in the same quarter in the previous financial year.

More on Tech Mahindra’s Q4 Results 2022

The company’s attrition rate on a QoQ basis was flat at 24%, but was up from 13% in the corresponding quarter in the previous fiscal year. The total headcount in the company was up by 4.2% QoQ and 24.9% YoY to 1,51,173 employees.

Tech Mahindra’s Board of Directors recommended a final dividend payout of Rs 15 per equity share and a special dividend of Rs 15 per equity share. The final dividend, if approved, will be paid on August 9, 2022. The final dividend recommended by the Board is Rs 30 per equity share. The total dividend paid in FY22 will be Rs 45 per equity share.

Highlights of Tech Mahindra Quarterly Results

  • Profit attributable to the owners of the company is up 39.2% YoY to Rs 1,505 crore for the quarter under review.
  • Revenue from operations was up 5.8% QoQ to Rs 12,116 crore in the quarter under review
  • The company’s EBITDA came in at Rs 8,020 crore; up 17.1% YoY
  • New deals worth $1.01 billion won in Q4 FY22, $3.28 billion in FY22
  • Earnings Per Share (EPS) up at Rs 17.09 in the quarter under review from Rs 15.58 in the previous quarter and Rs 12.37 in the year-ago period

Misses of Tech Mahindra Results

  • The company’s attrition rate is up at 24% in Q4 FY22 from 13% in Q4 FY21
  • Total expenses up almost 29% to Rs 6,047 crore from Rs 4,695 crore in the same quarter in the previous financial year

Segment-wise results

  • IT Services: Revenue up by 22.1% YoY to Rs 10,592 crore from Rs 8,673 crore in the year ago period
  • BPO Services: Revenue up by 44.2% YoY to Rs 1,523 crore from Rs 1,056 crore in the year ago period

What the Management says

CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said, the company’s commitment towards sustainable digital transformation and investment in new-age technology stacks has resulted in one of the highest growths with large deal wins over the last 7 years.

Other things to know about Tech Mahindra

  • The company’s P/E ratio is at 26.62 against the industry average of 28.65
  • Tech Mahindra’s P/B ratio is at 4.67 against the industry average of 7.97
  • The company’s dividend yield is at 3.70% against the industry average of 1.77%

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Research Analyst: Bavadharini KS

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