Tech Mahindra reported strong PAT in FY12, showing good signs of recovery!

Tech Mahindra, India’s leading software exporter today announced audited consolidated financial results for its fourth-quarter and year ended March 31, 2012. The fourth quarter revenues was at Rs 1,419 crore; up 13{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and Full year Revenues was at Rs 5,490 crore; up 7{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY. Tech Mahindra’s consolidated Net profit after tax (PAT) for Q4 was at Rs 303 crore, up 228{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and full year PAT was at Rs 1,095 crore, up 70{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} as compared to previous year.

Financial highlights for the Quarter (INR)

• Consolidated Revenues at Rs 1,419 crore; up 13{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and down 2{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
• Operating Profit (EBIDTA) at Rs 239 crore; down 8{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and up 2{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ.
• EBIDTA margins expand by 90 bps QoQ
• Consolidated PAT at Rs 303 crore; up 228{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and up 10{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
• Earnings per Share (EPS) was at Rs 29.16 for the quarter ended March 31, 2012

Financial highlights for the Quarter (USD)

• Revenues at USD 282 mn; up 1{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and down 2{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
• Revenue on constant currency basis was at USD 282 mn
• Operating Profit (EBIDTA) was USD 48 mn; down 17{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and up 3{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
• Consolidated PAT was at USD 62 mn; up 203{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and up 15{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ

Financial highlights for the Year (INR)

• Full year Revenues at Rs 5,490 crore; up 7{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3}  YoY
• EBIDTA at Rs 919 crore; down 8{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY
• Consolidated PAT at Rs 1,095 crore; up 70{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY
• Earnings per Share (EPS) was Rs 87.92 for the year ended March 31, 2012

Financial highlights for the Year (USD)

• Revenues at USD 1,156 mn; up 3{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY
• Revenue on constant currency basis at USD 1,144 mn
• Operating Profit at USD 194 mn; down 12{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY
• PAT at USD 230 mn up 63{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY

Other Highlights

• The Board of Directors have recommended a dividend of Rs 4/- per share (40 {af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3}) for FY 2011-12
• Added 2,430 personnel during the year, taking total headcount to 40,763. Software Professional headcount stood at 24,833, BPO at 14,792 and Support staff at 1,138
• Debt was at Rs 1,127 crore as of March 31, 2012; a decrease of Rs 250 crore during the quarter
• Cash and Cash equivalent was Rs 402 crore on balance sheet as of March 31, 2012
• Active Client count stood at 130

Business Highlights for the Quarter ended March 31, 2012

• Merger of Tech Mahindra and Mahindra Satyam was announced during the quarter, heralding the creation of a formidable top-tier global player. The Combined entity would emerge as one of India’s largest IT companies. The exchange ratio recommended by the valuers and approved by both the boards is 2 shares of Tech Mahindra (face value of Rs. 10 each), for every 17 shares of Mahindra Satyam (face value of Rs. 2 each). Tech Mahindra will issue 10.34 crore new shares, thereby increasing its outstanding shares to 23.08 crore and its equity capital to Rs 230.8 crore.
• Tech Mahindra and RedKnee announced the launch of ‘Telco in-a-box‚ Solution at Mobile World Congress, Barcelona.  The solution will provide MVNO/Es with a low-risk, flexible approach that can be launched to the market in weeks.
• Tech Mahindra along with Mahindra Satyam announced the signing of a Memorandum of Understanding (MOU) with Indian Statistical Institute (ISI) for broad collaboration in the field of analytics for the Telecom vertical. The MOU will leverage companies domain strengths and leadership along with ISI’s academic brilliance in the field of Analytics to develop joint solutions in data mining and data analytics.
• Tech Mahindra inaugurated Performance Engineering Lab in Pune the lab demonstrates TechM’s commitment to innovation and helps the client to reduce the time-to-market and enhances end user experience. The lab in the mould of innovation/capability factory will help Tech Mahindra to build new capabilities and also serve as a platform to train the associates.
• Tech Mahindra added to its footprint in Hinjewadi, inaugurated a new bloc in the campus, adding a capacity of 2,222 seats. With the addition of this new Bloc, the total capacity of the Hinjewadi campus is currently over 10,500 seats

Vineet Nayyar, Vice Chairman, MD and CEO of Tech Mahindra said, “The intrinsic strength of our service offerings has led to growth in our key customer relationships, however our performance this quarter has been impacted by some exceptional events. We continue to remain focused on our core competencies which will enable us to better serve our customers”

Key wins 

• Chosen by a leading European Telco for managing the operation and delivery of Vendor Access Services (VAS).
• Engaged by a leading Global Telco for transformation of its Sales Operations System. The scope involved automation of the sales and distribution system, sales planning, and stock distribution management.
•  Won a multiyear multimillion dollar deal to provide production support for mission critical applications covering customer care and mediation processes in the areas of LTE (Mobility 4G) and IT Network Delivery for a Tier I operator in North America.
•  Won a multiyear deal with Leading European Telco for managing its Unified Ticketing System implementation.  As part of the deal TechM will be implementing BMC ITSM suite in two of client’s European locations. With this win, TechM has made a successful entry in to Clients “Preferred Suppliers List for OSS Domain”.

Awards and Recognitions

• CanvasM test lab has been accredited by a top tier telecom player in North America for LTE testing, thus becoming the only Lab outside the USA and the second Lab in the world to achieve this immensely credible and creditable recognition.
• CanvasM bags the Rural Marketing award from World Brand Congress in the field of “Innovative ideas for Rural Development”. Saral Rozgar is a first of its kind assisted VAS platform that caters to the job requirements of blue collared workers. It has more than 35,000 job seekers as subscribers and 500 job providers with more than 4,000 job postings.