Finance & Capital Market

Tech Mahindra Q2 revenues up 16.4%; profit jumps 26.0%

Recording its highest sequential growth in a decade, Tech Mahindra Ltd, a specialist in digital transformation, has posted a YoY revenue increase of 16.4% and a profit jump of 26%.
 
The company’s revenue at $1472.6 million was up 6.4% QoQ and 16.4% YoY. Revenue growth was at 7.2% QoQ in constant currency terms.
 
Its EBITDA at $269.8 million was up 6.1% QoQ and up 17.2% YoY. Margins were at 18.3%.
 
Profit after tax (PAT) at $181 million was however down 1.2% QoQ but up 26.0% YoY. Free cash flow was at $ 187.9 million and conversion to PAT at 103.8%.
The company’s Board has proposed a special dividend of ₹ 15/- per share ($0.20) (300%).
 
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said: “As we record our highest sequential growth in a decade, we remain committed to deliver long- term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships. We continue to accelerate our clients’ digital journey by creating Human Centric Experiences, helping them gear up for tomorrow, today."
 
Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said: “Our strong execution has ensured that we maintain our profitability margins while accelerating growth momentum. We remain committed on the operational excellence journey we have boarded, and continue to create value to shareholders through efficient capital return.”
 
Tech Mahindra has announced the acquisition of Lodestone, a leading digital engineering quality assurance provider for new age digital companies. 
 
The acquisition will bolster Tech Mahindra’s digital engineering capabilities to effectively utilise data strategy and address machine learning challenges.
 
The strategic announcement will further enhance Tech Mahindra’s capability to provide end -to-end product quality assurance across hardware, software, and data layers to strengthen the company’s positioning as a leading digital transformation enabler in the engineering space.
 
Vivek Agarwal, President – BFSI, HLS and Corporate Development, Tech Mahindra, said: “The acquisition of Lodestone is in line with our strategy to strengthe n digital capabilities and provide enhanced and comprehensive transformation services to our customers globally. This will bring significant synergies to complement our domain expertise and will help drive growth going forward. We welcome Lodestone’s associates into the Tech Mahindra family.”-- TradeArabia News Service