By Dominick Rodrigues
Mumbai, Oct 23: Tech Mahindra Ltd, a specialist in digital transformation, consulting and business reengineering services, announced increased revenue upto 3.3% y-o-y (and 2.9% q-o-q) at Rs 9,373 crore in its second quarter FY20 results here today. Ebitda was up by 30.9% q-o-q to Rs 1,703 crore, while PAT rose by 9.5% q-o-q to Rs 1065 crore with the Board proposing a special dividend of Rs 15 per share (300%), according to CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra.
While the company’s total headcount stood at 124,258 (up by 842 QoQ), its Active Clients stood at 988 in Q2’21, (up by 7 QoQ), besides Cash and Cash Equivalent at US$ 1,564 million (as of Sept 30, 2020).
Highlighting demand revival — in the post-COVID19 scenario – across multiple segments due to customers accelerating their pace of digital transformation, Gurnani said the company’s focus on creating ‘Human-Centered Experiences’ would enable capturing increased spends on consumerization, even as businesses tried to stay relevant in the current environment.
“A Special Task Force has been formed for financial allocations and we are now investing in new ventures,” he said, while describing the demand on the ‘5G’ front as +evolving+ with expected rollout on volumes.
Stating that Tech Mahindra has partnered with VitalTech to offer digital technologies to healthcare providers as part of Tech Mahindra’s broader Virtual Health portfolio, Gurnani said the company has launched ‘Mhealthy’ — a solution to enable its workforce and community safety against COVID-19. “With the new normal witnessing 30% to 40% staff working from home, we are tracking our employees immunity levels and fitness through this App,” he emphasized.
Manoj Bhat, Chief Financial Officer, Tech Mahindra, said, strong execution on both revenue growth and operational metrics had helped improve the company’s performance on all fronts and its cash conversion continued to be robust. “Supplyside recovery and demand resurgence contributed to our robust quarter. Where sustainability of margins are concerned, we have long-term plans in place with goals for improvement. Overall business is 47% of our revenue, but the real driver for demand is clients viewing the changed world (due to Covid-19) and using digital transformation,” he said.
Noting that natural attrition caused some reductions in Q1FY20, Bhat said much of the company’s wins came from +New Age+ and digital technologies – which are expected to draw more wins in the future coming financial quarters.
Vivek Agarwal, Head, Corporate Development & Global Head for Healthcare and Financial Services, Tech Mahindra, said the acquisition of Momenton and Tenzing Ltd, was in line with company strategy to strengthen its digital capabilities, while offering clients end-to-end transformation services and also significantly enhancing its local presence in the markets through the combination creating significant synergies in bringing next generation solutions to customers.
Replying to questions, Agarwal said the company has announced investment in the Australia/New Zealand region in financial sectors for digital transformation, cloud engineering and other services across the spectrum.
Meanwhile, key wins for Tech Mahindra included: a multi-year deal with an American technology company for software engineering services; selection as a strategic partner for managed IT, security and network services by ASIAN telco; engagement by European pharma company as a development partner for transformation projects in Pharma Informatics; a multi-year deal with an Asian communications service provider (CSP) for IT managed services; bagging a managed services deal from a large telco in Southeast Asia for operational transformation; Engaged by a large Australian Communications Service Provider (CSP) for data and analytics services to support planning and decision making for field service control tower; selected by a power utility company for end to end system integration of green field ERP implementation; and selection by one of the largest public sector banks in India for creating core banking infrastructure across multiple locations.
Tech Mahindra announced the strategic acquisition of Momenton, a digital enterprise technology firm, offering consultancy and implementation services, and Tenzing Limited, a technology consulting company. Tech Mahindra has acquired 100% equity in both the organizations, and together they will enable digital capabilities, modern cloud-based architecture and transformation for customers in the ANZ (Australia and New Zealand), specifically in Financial Services.
Tech Mahindra and Rakuten Mobile have collaborated with Rakuten Communications Platform for driving innovation in the telecom space, enhanced customer experience and leading transformation in mobile network technology from the forefront. Tech Mahindra and Smart Energy Water (SEW) — a global energy and water cloud platform provider — have entered into a global partnership to accelerate digital transformation for energy and water utility industry.
The company has collaborated with Amazon Web Services (AWS) to build solutions based on blockchain technology, besides also joining hands with NITI Aayog’s Women Entrepreneurship Platform (WEP) to support women entrepreneurs countrywide through mentorship, co-creating solutions, leveraging new age technologies and developing a go-to-market strategy.
Tech Mahindra has entered into a global strategic partnership with CyQureX, a leading provider of advanced Cyber Security solutions world-wide, with a view to offer world class cyber security solutions to support clients through successful digital transformation. It has launched a new digital platform, branded as ‘Blockchain based Contracts and Rights Management System’ (bCRMS) for the global media and entertainment industry to enable production houses and content creators to track revenue, royalty payments, manage rights and address content piracy leveraging IBM blockchain.
