Tech Mahindra has many reasons to celebrate these days as the IT major has ended the second quarter of FY-2021 with an EBITDA that grew 30.9%. The company’s ‘Repair, Rally and Rise’ strategy has helped it emerge stronger, explained Managing Director and CEO CP Gurnani.
“We are witnessing demand revival across multiple segments as customers have accelerated their pace of digital transformation,” added Mr. Gurnani.
Delivering A Strong Performance
Tech Mahindra’s revenues were up 3.3% year-on-year (YoY) at Rs. 9,372 crores, while its EBITDA was up 30.9% at Rs. 1,703 crores, quarter-on-quarter (QoQ). Margins were at 18.2%, up 390bps QoQ. Profit After Tax (PAT) was up 9.5% at Rs. 1,065 crores. With Earnings Per Share (EPS) at Rs. 12.11, the company’s Board has proposed a special dividend of Rs. 15 per share.
“Strong execution on both revenue growth and operational metrics has helped improve our performance on all fronts,” said Manoj Bhat, CFO, Tech Mahindra. “The cash conversion continues to be robust,” he added.
Tech Mahindra has also acquired 100% equity in Momenton, a digital enterprise technology firm, offering consultancy and implementation services; and Tenzing Limited, a technology company. These strategic acquisitions will enable digital capabilities, modern cloud-based architecture and transformation, specifically for financial services for customers in Australia and New Zealand.
Tech Mahindra has also picked up a slew of awards and accolades including:
- The ASSOCHAM Innovators’ Excellence Awards 2020 in ‘Innovation in CSR Initiatives’ category for its Mobile Science Lab
- Recognised among ‘India’s Top 20 Companies for Sustainability and CSR 2020’ by the Economic Times
- Ranked 7th in Futurescape’s Responsible Business rankings during the ETSDG Impact Summit 2020
- Recognised as a leader by Sustainalytics with 99 percentile, and an overall score of 84
- Rated BBB by Morgan Stanley Capital International (MSCI) with an ESG quality score of 7.5
- Recognised for its ‘In the Future’ campaign curated in partnership with The Trust – The Wall Street Journal and Barron’s Group at the corporate influencer at the World Media Awards 2020
These successes and recognitions spur Tech Mahindra to achieve even more. “Our focus on creating Human Centred Experiences will enable us to capture increased spends on consumerisation, as businesses try to stay relevant in the current environment, concludes Mr. Gurnani.
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