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Tech Mahindra Q4: Net profit rises 39% to Rs 1,506 cr, the dividend declared

Tech Mahindra Q4: Net profit rises 39% to Rs 1,506 cr, the dividend declared

 

Tech Mahindra announced on Friday that its net profit for the quarter ended March 31, 2022, increased by 39.2% year over year. For the January-March quarter of FY22, the company reported a net profit of Rs 1,506. The previous financial year made a net profit of Rs 1,081 crore.

In comparison to the previous year, its net profit for the financial year 2021-22 increased by 25.7% to Rs 5,566 crore.

Revenue for the quarter ending March 31, 2022, increased by 24.5 per cent year on year to Rs 12,116 crore, up from Rs 9,730 crore in the previous fiscal quarter. Tech Mahindra’s revenue for FY22 was Rs 44,646 crores, up 17.0% from the last fiscal year.
In FY22, Tech Mahindra’s profits per share (EPS) was Rs 62.8. In FY22, the company generated Rs 4,417 crore in free cash flow.

In addition, for the fiscal year ending March 31, 2022, the Directors have suggested a final dividend of Rs 15 per share and a special dividend of Rs 15 per share on a par value of Rs 5 per share. If granted, the final dividend will be paid on August 9, 2022, according to Tech Mahindra.

This dividend is in addition to the special dividend of Rs.15 per share paid in November 2021 as an interim dividend. The total dividend for the Financial Year 2022 will be Rs 45 for each share, based on a par value of Rs 5.

“Our increasing growth performance is due to the power of Human-Centered Experiences, a strong focus on innovation, and our ability to establish a robust customer and partner ecosystem. Tech Mahindra’s commitment to sustainable digital transformation and investment in new-age technology stacks has resulted in one of the greatest growth rates with large deal wins over the previous seven years, “CP Gurnani, CEO and MD of Tech Mahindra, commented on the company’s performance.

“Our structural! Profitability remains strong, and we look forward to continuing our path with a focus on the resilient capital return and operational efficiency, backed by a complete digital portfolio,” said Milind Kulkarni, Tech Mahindra’s Chief Financial Officer.
On Friday, Tech Mahindra’s shares fell 0.97 per cent to Rs 1,201 per share on the National Stock Exchange.

 

tech mahindra

About Tech Mahindra


Tech Mahindra is a global IT services and consulting company based in India. It is headquartered in Pune and has its registered office in Mumbai, and it is part of the Mahindra Group. Tech Mahindra has a market capitalisation of $5.2 billion and employs over 145,000 people in 90 countries. On the Fortune India 500 list for 2019, the company was placed #5 among India’s IT firms and #47 overall. Tech Mahindra confirmed the conclusion of a merger with Mahindra Satyam on June 25, 2013. As of April 2020, Tech Mahindra has 973 active clients.


History


In 1986, Mahindra & Mahindra formed a technology outsourcing joint venture with British Telecom. British Telecom owned a 30 per cent investment in Tech Mahindra at the start. British Telecom sold a 5.5 per cent share in Tech Mahindra to Mahindra & Mahindra for Rs. 451 crore in December 2010. British Telecom sold 14.1% of its shares to institutional investors for Rs. 1,395 crore in August 2012. British Telecom sold its remaining 9.1% (11.6 million shares) of the company to institutional investors in December 2012 for total gross cash proceeds of Rs. 1,011.4 crores. British Telecom left Tech Mahindra after this transaction.

 

Acquisition of Satyam Computer Services Ltd.

 

After the Satyam controversy in 2008-09, Tech Mahindra made a proposal for Satyam Computer Services, beating out a strong opponent, Larsen & Toubro, with an offer of INR 58.90 per share for a 31% ownership in the company. The Company’s Board of Directors has chosen Venturbay Consultants Private Limited, a subsidiary of Tech Mahindra Limited, as the highest bidder for a controlling stake in the company, subject to the Hon’ble Company Law Board’s approval. After assessing the offers, Satyam Computer’s government-appointed board announced on April 13, 2009.

 

Merger with Mahindra Satyam


On March 21, 2012, Tech Mahindra and Mahindra Satyam announced their merger, which would form a US$ 2.5 billion IT business. The Bombay Stock Exchange (BSE) and the National Stock Exchange ( had both given their approval for the merger. After receiving approval from the Bombay high court, the Andhra Pradesh High Court approved the merger of Mahindra Satyam and Tech Mahindra on June 11, 2013. Technical permissions from the Registrars of Companies in Andhra Pradesh and Maharashtra are necessary, which will be completed in two to four weeks.

According to Vineet Nayyar, the newly merged business will be operational in eight weeks. Anand Mahindra will serve as Chairman, Vineet Nayyar as Vice Chairman, and C. P. Gurnani as CEO and Managing Director of the new company. On June 25, 2013, Tech Mahindra and Mahindra Satyam announced the conclusion of their merger, resulting in the nation’s fifth-largest software services firm with a revenue of US$2.7 billion. On June 24, 2013, at 11:45 p.m., Tech Mahindra received clearance from the registrar of companies for the merger.

The record date for the exchange of Satyam Computer Services (‘Mahindra Satyam’) shares for Tech Mahindra shares under the authorised scheme is July 5, 2013. Following the merger, Mahindra Satyam (Satyam Computer Services) was delisted from the stock exchange on July 4, 2013. On July 12, 2013, Tech Mahindra executed a share swap and distributed its shares to Satyam Computer Services shareholders. The stock exchanges have given their approval for the new shares to be traded beginning July 12, 2013. For the first quarter ending June 30, 2013, Tech Mahindra reported a net profit of INR 686 crore, up 27% over the previous year’s comparable quarter.

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Later years


Lightbridge Communications Corporation (LCC), one of the world’s leading independent telecom services companies with a local presence in over 50 countries, was bought by Tech Mahindra in 2014. Tech Mahindra bought SOFGEN Holdings, a 450-person Swiss IT firm that serves the financial services industry, in 2015. Pininfarina S.p.A., an Italian automobile and industrial design company, was purchased by Tech Mahindra.

The Automation Framework AQT was launched by Tech Mahindra (Automation, Quality, Time). Tech Mahindra’s post-tax earnings had surpassed M&M’s by March 2016, and it has announced that it will acquire financial technology startup Target Group in order to expand its platform business process-as-a-service offering in the banking industry. In 2017, Tech Mahindra and Midad Holdings, a subsidiary of the Al Fozan Group, announced the formation of Tech Mahindra Arabia Ltd, a joint venture.

Tech Mahindra would promote Huawei’s enterprise products and services in 44 countries, including India, under the terms of a global collaboration agreement. Tech Mahindra has inked a definitive deal to buy CJS Solutions Group LLC, a healthcare IT consulting firm based in the United States that operates under the name “The HCI Group.” Tech Mahindra bought DynaCommerce BV in 2019. In September 2019, Tech Mahindra paid $95 million in cash for BORN Group, a digital content and production business based in New York City.

Tech Mahindra teamed with ThoughtSpot, a business intelligence analytics firm based in the United States, in March 2021. Tech Mahindra paid $120 million for DigitalOnUs, a hybrid cloud and DevOps services provider based in the United States, in April 2021.

Anand Mahindra, Managing Director of Mahindra & Mahindra

 

On May 1, 1955, Anand Mahindra was born in Mumbai to a prominent business family. Harish Mahindra, an industrialist, is his father’s name, and Indira Mahindra is his mother’s name. Anand attended Lawrence School in Lovedale for his early education.
Radhika Nath and Anuja Sharma are his sisters. In 1977, Anand graduated from Harvard University with a degree in architecture and filmmaking. In 1981, he received his Master of Business Administration (MBA) from Harvard Business School in Boston, Massachusetts.

Anuradha Mahindra is Anand Mahindra’s wife, and she is the Editor-in-Chief of Rolling Stone India. She is the well-known editor of ‘Man’s World’ and ‘Verve.’ The couple has two daughters together.

Anand is the grandson of Jagdish Chandra Mahindra, the co-founder of Mahindra & Mahindra. In 1996, Anand founded Nanhi Kali, a non-governmental organisation that supports education for poor girls in India.

In 1981, Anand joined Mahindra Ugine Steel Company (MUSCO). He worked for Mahindra Ugine Steel Company as an Executive Assistant to the Finance Director. Anand was elected President of MUSCO in 1989.

He developed Mahindra Ugine Steel Company into the real estate and hospitality industries. In 1991, Anand was appointed as the Deputy Managing Director of Mahindra & Mahindra Group, India’s largest automobile manufacturer and one of the top ten industrial enterprises in the country. In 2003, Anand was appointed Vice Chairman of Mahindra Group.

Anand Mahindra co-founded Kotak Mahindra Finance Ltd. Kotak Mahindra Finance Ltd and converted it into a bank in 2003. Kotak Mahindra Bank is now one of India’s leading private sector banks.

In 2002, the Mahindra & Mahindra Group released the Scorpio, an indigenously produced SUV, which helped give it a global identity and helped the Mahindra Group build favourable perceptions. As a result, the company has grown through both organic growth and acquisitions.

In 2009, the corporation acquired Reva Electric Vehicles and Satyam Computer Services as part of its possession activities.

Anand Mahindra is an Indian billionaire businessman and the head of the Mahindra Group, a Mumbai-based conglomerate. Aftermarket, automotive, aircraft, finance, insurance, agriculture, components, defence, energy, construction equipment, farm equipment, leisure, hospitality, industrial equipment, information technology, logistics, real estate, and retail are all areas in which the company operates.

Anand attended Harvard Business School as well as Harvard University. His net worth is estimated to be $1.6 billion as of January 2020. Fortune Magazine named him one of the “World’s 50 Greatest Leaders.”

Forbes (India) named Anand “Entrepreneur of the Year” for 2013. In January 2020, Anand received the Padma Bhushan Award, India’s third-highest civilian honour.
Anand is also the World Economic Forum’s Co-Chairperson. He also earned the Rajiv Gandhi Award for his excellent services to the corporate world. The American India Foundation presented him with the Leadership Award. Anand received the Auto Monitor Person of the Year award.

tech mahindra

Why should anyone work at Tech Mahindra?

 

TCS, Infosys, Tech Mahindra, Wipro, and HCL are just a few of the Indian IT giants driving the country’s software industry. There are companies that most software professionals aspire to work for in order to advance their careers.


1. Work-life balance


Working in a company requires software professionals to consider work-life balance. However, the company’s policies on work-life balance became the most important reason why individuals desire to work at Tech Mahindra. Only 30% of respondents indicate they have to work more than 10 hours every day, which is an excellent number when compared to comparable companies.

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2. Individuals/Colleagues


The smart coworkers, with whom employees spend the majority of their time at work, are the second-highest gainer on the list. Over 88 per cent of employees feel their coworkers are smart and intelligent when asked about their own intelligence. This is one of the key reasons that most Tech Mahindra workers claim they chose to work for the company.

3. Working Environment


More than 83 per cent of Tech Mahindra employees believe their coworkers are on time. The work environment is bound to be healthy with smart and punctual coworkers and a better work-life balance. As a result, employees consider the work environment to be the third most important reason to join Tech Mahindra.


4. Brand Name


Technology Mahindra is without a doubt one of the most well-known brands in the Indian IT industry, offering long-term employment opportunities. As a result, it has become a dream location for many software engineers looking to make a career in IT.

5. Flexible Hours


For a large portion of the workforce, company policies are frequently the source of happiness or dissatisfaction. On the other hand, Tech Mahindra excels at implementing healthy work norms at its offices. Flexi work hours are one of the company’s good efforts to let employees work more freely and increase productivity, and it is the fifth-largest incentive for employees to stay at Tech Mahindra.

 

tech mahindra

Gurnani is reappointed as CEO of Tech Mahindra till December 2023, following the company’s fastest sales increase in seven years.

 

Tech Mahindra, India’s fifth-largest software exporter, reported fourth-quarter results that met analyst projections, although margins fell short of expectations due to greater staff expenses and reduced utilisation.

It had a double-digit revenue growth of 17.3 per cent in the fiscal year 2021-22, and it expects the trend to continue.

“We believe this is the strongest growth performance we’ve had in seven years.” “Our commitment to guidance, people, and the value we produce for customers is reflected in our 17.3 per cent YoY growth,” stated CP Gurnani, Tech Mahindra’s Managing Director and Chief Executive Officer.

Its net new total contract value for the quarter was $1.01 billion, up 44 per cent from the previous quarter, indicating a rapid pace of dealmaking.

It has made a few statements about management. Gurnani’s term has been extended till December 2023; Milind Kulkarni has been replaced as CFO by Rohit Anand.

While software companies experienced substantial growth in the previous fiscal year as a result of post-pandemic digitisation and cloud migration, attrition remains a minor concern as corporations ramp up the hiring of technological expertise.

Tech Mahindra’s attrition rate was 24 per cent in the third quarter, unchanged from the previous quarter. The total headcount was 151,173, up 4.2 per cent quarter over quarter, with the corporation hiring 6,106 net personnel.

To keep up with increased demand and attrition, the corporation had previously stated that it planned to hire 15,000 people on campus in 2022-23, up from 10,000 in the previous fiscal year.

“We’ve put a lot of money into people.” We’ve also made investments in Tier 2 cities, opening 15 additional locations. “We’ve added at least four new global delivery hubs in Latin America and another four in Europe,” Gurnani said.

The need for 5G telecom services boosted one of its core sectors, Communication, Media and Entertainment (CME).

“As clients begin to roll out and commercialise 5G networks, we’ve seen substantial deal wins,” Anand said.

Tech Mahindra said that it had secured a strategic deal to build and operate Europe’s first fully cloud-native end-to-end 5G network, including network data centres, labs, and security infrastructure.

Second, the company’s Metaverse solutions have been well received in the media and entertainment industry. “We see that as a great opportunity,” Anand said.
The BFSI (banking, financial services, and insurance) vertical had tremendous growth, with the vertical’s run rate topping a billion dollars for the very first time.

“CME has always been the Northstar, and it is doing exceptionally well.” But I’m glad BFSI has joined the billion-dollar club,” Gurnani remarked.

Despite potential concerns about inflation and the geopolitical situation, the company stated that demand remains strong across industries and markets.
Tech Mahindra Recognised as the Fastest Growing Organization in ‘Brand Strength’ by Brand Finance

Tech Mahindra has been rated a notable provider of digital transformation, consultancy, and business re-engineering services and solutions by Brand Finance, the world’s leading brand evaluation organisation. Among the top 15 IT services organisations, it has the fastest-growing brand strength. In the last two years, its brand value has climbed by 45 per cent, reaching USD 3 billion, and its brand strength has been raised from AA- to AA+. In terms of brand strength, Tech Mahindra is among the top seven worldwide brands.

Tech Mahindra has been bolstering its worldwide brand presence over the last year in order to deliver on its promise of a “Connected World. Connected Experiences.” With its commitment to NXT.NOWTM to clients across industries, the company has continually emerged as a pioneer in sustainability and human centricity and as a valued partner to drive digital transformation agenda, staying true to its reputation as a ‘Brand for Purpose.’

“For the IT and digital business, the preceding two years have been unconventional and disruptive in many respects,” said Harshvendra Soin, Tech Mahindra’s Global Chief People Officer and Head of Marketing. “Creating a brand with a mission has never been more important. The only way we can survive and develop in this environment is to build brand equity by giving our partners, consumers, employees, and other stakeholders a reason to choose and trust us.

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Therefore, staying rooted in brand purpose is vital for any company to remain desirable to its consumers and communities while also making it robust to adversity and disruption. This increase in brand strength demonstrates our ability to live our Rise principles and make a real difference on the ground.”

Tech Mahindra recently received HRH The Prince of Wales’ Terra Carta Seal for its dedication to a sustainable future, making it the only Indian firm to do so. Furthermore, the company is dedicated to becoming carbon neutral by 2030 and net-zero by 2050 in order to create a greener, more sustainable future. Simultaneously, the corporation is spending time, effort, and resources to mitigate COVID-19’s negative impact on communities through projects like #ResolvetoRise, which encourages people to take action on the ground.

“With its redesigned ‘NXT.NOW’ architecture, Tech Mahindra focuses on digital transformation offerings for its worldwide clients. Its brand value has shown a growth of 45 per cent in the last two years as a result of aggressively increasing market share in high-growth industry verticals while also maintaining client loyalty. We anticipate the company continuing to invest in the brand as it pursues the next stage of growth by expanding into new verticals and geographies. With concentrated actions in the areas of sustainability, diversity, efficient brand building, and cloud transformation, we have observed that the Tech Mahindra brand has balanced brand strength growth and remained relevant.”

Tech Mahindra continues to expand through strategic deals and speciality acquisitions like DigitalOnUs, CTC, Perigord, Brainscale Inc., Beris Consulting, Activus, Infostar, and Eventus Solutions Group digital capabilities to new locations and sectors like BFSI, insurance, media, and entertainment. Furthermore, Tech Mahindra has constantly emphasised the need to intelligently use next-generation technology to increase human skills and sensitivities and move from a traditional to a circular and sustainable economy through its active engagement at the World Economic Forum,” stated David Haigh, CEO and Chairman of Brand Finance.

 

tech mahindra

Tech Mahindra is the Only Indian Company on the Forbes’ Blockchain 50 List

 

Tech Mahindra, a leading source of digital transformation, consultancy, and business re-engineering services and solutions, has been selected to the Forbes Blockchain 50 list, a prestigious global ranking of pioneering firms, startups, and influencers in the distributed ledgers area. Tech Mahindra is the sole Indian company on the list, which includes 50 companies.

The company has been recognised for producing over 60 blockchain-based applications in a variety of industries, including media and entertainment, manufacturing, retail, and energy. VaccineLedger, a blockchain-based unit-level traceability system for global vaccine delivery, was highlighted in particular. The system helps predict and prevent supply chain problems like wastage caused by obsolete vaccines, stock-outs, and counterfeiting.

The COVID-19 has accelerated the adoption of emerging technologies, with Blockchain emerging as one of the key technologies best equipped to significantly improve the efficiency of any supply chain operations, facilitate a real-time view of all transactions, and eliminate the ‘trust gap’ among all emerging technologies. We are pioneers in leveraging NFTs and Digital Identities to address complex business problems and provide a nuanced experience for end-users at Tech Mahindra. Forbes’ accolade demonstrates our commitment to developing blockchain-based solutions to address changing client needs.” said Rajesh Dhuddu, VP & Practice Leader, Blockchain & Cybersecurity, Tech Mahindra.

Blockchain is increasingly becoming a part of Tech Mahindra’s diverse business verticals, and it is a key component of the company’s digital transformation strategy. As part of its NXT.NOWTM framework, which aims to improve the ‘Human Centric Experience,’ Tech Mahindra invests in building technologies and solutions that enable digital transformation and answer customers’ growing needs. Tech Mahindra’s ‘Block Ecosystem,’ which includes Block Studio, Block Engage, Block Talk, Block Geeks, Block Accelerate, Block Access, and Block Value, can be used to create industry-leading apps that unlock significant value for clients.

 

tech mahindra

Tech Mahindra to create 1,000 jobs in the UK

 

Tech Mahindra announced intentions to develop new revenue streams and 1,000 jobs in the UK on Friday.

According to a release, Tech Mahindra’s Makers Lab in Milton Keynes will cooperate with a prominent UK academia and research institute to co-innovate.
According to the announcement, the company would create up to 1,000 employees in the UK.

The British prime minister, Boris Johnson, announced a new AI collaboration between the two countries while on a two-day visit to India.

The programme intends to boost both countries’ creativity and economy while also leveraging the power of new technology to address global concerns.

“The UK-India trade and investment relationship creates excellent employment and supports livelihoods in both nations. In a statement, Johnson said, “I am delighted that Tech Mahindra has joined the legions of Indian companies investing in the UK, supporting our technology industry and driving economic growth.”

CP Gurnani, the CEO of Tech Mahindra, stated that artificial intelligence (AI) breakthroughs and apps might drastically improve productivity and generate income streams for UK firms.

“We’re dedicated to investing in the communities where we do business, and programmes like this aid future technologists in the UK and around the world,” he added.

edited and proofread by nikita sharma

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