Tech Mahindra Q2 Results FY2023, Net Profit at Rs. 1285 crores

On 1st November 2022, Tech Mahindra announced its quarterly results for the second quarter of FY2023.

Q2FY23 Performance updates:

In USD:
- Revenue at $ 1,638 million; up 0.3% QoQ and up 11.2% YoY, Revenue growth 2.9% QoQ in constant currency terms 
- EBITDA at $ 246 million; up 2.9% QoQ, down 9.0% YoY, EBITDA margin at 15.1%, up 30 bps - Profit after tax (PAT) at $ 159 million; up 11.2% QoQ and down 12.3% YoY 
- Free cash flow at $ 253 million, conversion to PAT at 159%

In INR:
- Revenue at Rs. 13,129 crores; up 3.3% QoQ and up 20.7% YoY 
- EBITDA at Rs. 1,984 crores; up 5.5% QoQ, down 0.6% YoY 
- Consolidated PAT at Rs. 1,285 crores; up 13.6% QoQ and down 4.0% YoY 

Business Highlights:

- Total headcount at 163,912 up 3.7% QoQ
- Tech Mahindra has won a deal with one of the world's largest-growing ERP solutions companies to provide digital product engineering, support & consulting services. 
- Tech Mahindra was chosen as an exclusive strategic partner to provide consulting & managed services in Cloud Application Services by a leading global enterprise software provider. 
- Tech Mahindra has won a multi-year strategic deal with one of the world's leading American software developer in the gaming industry.
- Tech Mahindra has been chosen by one of the largest omni-channel solutions provider based in Europe.
- Tech Mahindra was chosen by a leading American healthcare provider as a strategic partner in a comprehensive deal to assist digital migration of its existing platforms to a cloud-native.
- Tech Mahindra was chosen by one the largest defense conglomerates in Africa, as a strategic partner for digitally transforming its systems using SAP S/4 HANA. 
- Tech Mahindra has won a deal with one of Africa's largest telecommunications operators to manage digital workflows for their enterprise operations using Tech Mahindra 's ServiceNow Cloud Computing platform. 
- Tech Mahindra was selected for a multi-year by a leading communications service provider in Europe to migrate its 828 legacy Monitoring solution to a new-age digital solution. 
- Tech Mahindra was chosen by a leading communications service provider in Asia for managing the NOC & Operations, Service Desk for supporting Enterprise Customers of 828 Business. 
-  Tech Mahindra has won a strategic deal with one of the largest players in wealth management & superannuation space for assisting in its Core System Transformation and multi-year RUN services on the new digital platform.
- Tech Mahindra partners with Google, to launch Google's Street View in India. 
- Tech Mahindra partners with Union Bank of India to launch India's first PSU Metaverse Lounge "Universe" to deliver a complete interactive and immersive experience across banking services. - Tech Mahindra partners with ColorTokens and SSIC to launch Strategic Cyber Insights, powered by XAnalytics, to deliver advanced Zero Trust cybersecurity solutions and risk management services. 

Commenting on the results, CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said, "We continue to focus on being resilient and agile to ensure long-term value for our people, customers, partners, and the society at large. While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated & new-age solutions." 

The Board has approved a special dividend of Rs. 18/- per share (360%) on the FV of Rs. 5/-
 

Tech Mahindra share price rose up by 1.04%.