InvestorQ : What is it that drove the 25% growth in profits for Tech Mahindra in Sep-21 quarter?
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What is it that drove the 25% growth in profits for Tech Mahindra in Sep-21 quarter?

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Dilmini Mercia answered.
1 month ago
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Tech Mahindra reported 16.1% growth in revenues for the Sep-21 quarter at Rs,10,881 crore. Net profits were higher by 25.75% at Rs.1,339 crore. Number of active clients of Tech Mahindra went up from 988 clients last year to 1,123 clients in the current quarter. The US revenues grew 14.9%, Europe 19.9% and rest of the world grew by 15.7%. Offshore share of the business went up from 37% to 39% over the last one year.

For the Sep-21 quarter, the EBITDA was up 17.2% at Rs.1,995 crore and operating margins stood at 15.18%, well below the peer group average. Tech Mahindra has also proposed a special dividend of 300% or Rs.15 per share. Net margins for Sep-21 quarter at 12.30% was higher than 11.36% in the year-ago Sep-20 quarter.

In terms of sectoral verticals exposure, Tech Mahindra saw growth across CME (communication, media, entertainment), manufacturing, technology and BFSI verticals. However, there are some challenges too. Attrition is up from 14% last year to 21% in the current year, something quite rampant among the IT companies in the current quarter.
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