Communications segment brought in 42% of TechM's Q1 revenues: Key takeaways

IT major Tech Mahindra on Tuesday missed estimates marginally, as it posted a 6.83 per cent year-on-year (YoY) rise in consolidated net profit at Rs 959.30 crore for the quarter ended June 30.

For the corresponding quarter a year ago, the company had reported a net profit of Rs 897.90 crore . Analysts in an ETNow poll had estimated a net profit of Rs 988 crore.

Consolidated revenue increased 4.55 per cent YoY to Rs 8,653 crore from Rs 8,276.30 crore reported for the year-ago period.


Key takeaways for the quarter in rupee terms

Revenue inches higher
Revenue in rupee terms came in at Rs 8,653 crore; up 4.6 per cent YoY

Ebitda contracts
Ebitda dropped 3.2 per cent YoY to Rs 1,314 crore

Margins shrink
Margins were down 120 basis points (bps) YoY at 15.2 per cent.

Profit edges up
Profit after tax (PAT) rose 6.8 per cent YoY to Rs 959 crore

EPS/Free cash flow
Earnings per share (EPS) came in at Rs 10.98 for the quarter ended June 30, 2019. Free cash flow for the quarter stood at Rs 598 crore, while cash conversion to PAT was at 62.3 per cent

Dollar revenue edges higher
Revenue in US dollar terms rose 1.9 per cent YoY to $1,247.1 million Revenue growth was at 3.7 per cent in constant currency terms. Digital revenues grew 37.4 per cent YoY.

Ebitda narrows
Ebitda dropped 4.8 per cent YoY in dollar terms to $190.0 million

Profit inches up
Consolidated PAT rose 5.2 per cent YoY to $138.7 million.

Revenue by geography
Revenue from the Americas contributed 47.6 per cent of the total, while Europe brought in 27.6 per cent and the rest of world 24.8 per cent

Revenue By Industry
The communications industry contributed 42.0 per cent of total revenues. Manufacturing came in at 19.4 per cent; technology, media & entertainment 7.6 per cent; banking, financial services & insurance 12.8 per cent; and retail, transport & logistics 6.2 per cent, while other sectors added 11.9 per cent

Headcount increases
Total headcount in the company rose by 4,691 QoQ to 1,25,773