INSUBCONTINENT EXCLUSIVE:
Software services exporter Tech Mahindra on Tuesday posted 27.28 per cent year-on-year rise in net profit at Rs 1,064 crore for the quarter
It had posted a net profit of Rs 836 crore in the corresponding quarter last year
Sequentially, profit rose 18.54 per cent.
Consolidated total revenue increased 11.05 per cent YoY and 4.97 per cent QoQ to Rs 8,804.73 crore
during the quarter under review.
Here are key takeaways from the Q2 earnings.
EBITDA margin: EBITDA jumped 46.40 per cent YoY and 19.30 per
cent QoQ to Rs 1619 crore in Q2FY19
EBITDA margin increased 430 basis points YoY and 240 basis points QoQ to 18.80 per cent.
Management-speak: CP Gurnani, Managing Director
Our strong deal wins especially in the communication vertical coupled with our 10 per cent plus sequential growth in digital revenues are a
validation of our run, change and grow strategy
Barring declines in our implementation business in our healthcare vertical, we have clocked a good quarter in terms of both revenue growth
and EB/DTA margin improvement
We will endeavour to maintain this momentum as we continue our journey."
CFO Manoj Bhat added: "This has been a strong quarter with
improving operating metrics across most of our business lines
Our focus on optimizing our operations has led us to the highest EBITDA level and margin improvement in excess of 2 per cent sequentially
and 4 per cent on a YoY basis."
Key deal wins: During the quarter, the company won a deal from a leading American Healthcare Services
provider for managing its security services stack
It also bagged a contract from a large Nordic OEM for Device testing services
Tech Mahindra received a contract from a North American Communication Service Provider region for its Enterprise wide testing services,
The IT firm is also selected by a Tier 1 American Telco, for transforming its business network services, helping enrich the customer
experience, augment service delivery and bring in productivity efficiencies
Other updates: Total headcount stood at 1,18,391 as of September 30, 2018, up 4,839 on a QoQ basis
Software headcount stood at 72,534 while BPO at 39,407
Cash and Cash equivalent came at Rs 37,900 crore as of September 30, 2018
The active client count stood at 930 in Q2, up by 4 on QoQ basis
Financial highlights in dollarsRevenue jumped 0.40 per cent QoQ in constant currency terms
Revenue increased by 3.3 per cent YoY to $1218.20 million
However, the figures declined marginally by 0.50 per cent on a QoQ basis
EBITDA in dollar terms came at $226.90 mn, up 32.70 per cent YoY and 13.70 per cent QoQ
Consolidated PAT increased by 15.60 per cent YoY and 13.30 per cent QoQ to $149.40 million.
