Tech Mahindra Ltd

About

Tech Mahindra is a leading provider of consulting-led integrated portfolio services to customers which are Telecom Equipment Manufacturers, Telecom Service Providers and IT Infrastructure Service Providers, Business Process Outsourcing Service Providers as well as Enterprise Solutions Services (BFSI, Retail & Logistics, Manufacturing, Energy and Utility (E&U), and Healthcare, Life Sciences, etc.) of Information Technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. It also provides comprehensive range of IT services, including IT enabled services, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services to a diversified base of corporate customers in a wide range of industries including insurance, banking and financial services, manufacturing, telecommunications, transportation and engineering services.

  • Market Cap 138,777 Cr.
  • Current Price 1,431
  • High / Low 1,548 / 782
  • Stock P/E 28.9
  • Book Value 256
  • Dividend Yield 1.05 %
  • ROCE 23.0 %
  • ROE 19.0 %
  • Face Value 5.00

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 50.05%

Cons

  • The company has delivered a poor sales growth of 7.40% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
8,630 8,944 8,892 8,653 9,070 9,655 9,490 9,106 9,372 9,647 9,730 10,198
7,024 7,234 7,281 7,347 7,569 8,091 8,360 7,806 7,669 7,752 7,832 8,321
Operating Profit 1,605 1,709 1,612 1,306 1,501 1,563 1,130 1,300 1,703 1,896 1,897 1,876
OPM % 19% 19% 18% 15% 17% 16% 12% 14% 18% 20% 20% 18%
Other Income 175 81 167 341 217 350 287 416 118 221 33 287
Interest 39 36 28 45 38 55 53 50 40 42 42 38
Depreciation 294 284 270 321 342 385 398 383 372 358 344 331
Profit before tax 1,447 1,471 1,480 1,281 1,338 1,474 966 1,283 1,409 1,716 1,544 1,794
Tax % 27% 18% 24% 26% 17% 25% 25% 26% 25% 25% 32% 24%
Net Profit 1,064 1,203 1,132 959 1,124 1,146 804 972 1,065 1,310 1,081 1,353
EPS in Rs 10.85 12.26 11.52 9.95 11.65 11.87 8.32 10.06 11.01 13.54 11.17 13.97

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
4,625 5,140 5,490 6,873 18,802 22,621 26,494 29,141 30,773 34,742 36,868 37,855 38,946
3,495 3,721 4,572 5,451 14,630 18,428 22,234 24,956 26,063 28,471 31,365 31,059 31,574
Operating Profit 1,131 1,419 918 1,422 4,172 4,193 4,260 4,184 4,710 6,271 5,503 6,796 7,372
OPM % 24% 28% 17% 21% 22% 19% 16% 14% 15% 18% 15% 18% 19%
Other Income 69 -298 30 -141 244 106 453 775 1,417 534 1,192 788 659
Interest 218 100 103 103 80 69 97 129 162 133 192 174 162
Depreciation 134 144 161 200 522 611 759 978 1,085 1,129 1,446 1,458 1,406
Profit before tax 847 877 685 978 3,815 3,618 3,857 3,853 4,879 5,543 5,058 5,953 6,464
Tax % 17% 15% 21% 24% 20% 27% 22% 26% 22% 23% 23% 27%
Net Profit 700 644 1,096 1,288 3,029 2,628 2,993 2,813 3,800 4,298 4,033 4,428 4,809
EPS in Rs 14.32 12.79 21.48 25.13 32.44 27.35 30.92 28.88 38.78 43.70 41.76 45.73 49.69
Dividend Payout % 6% 8% 5% 5% 15% 22% 35% 28% 33% 29% 32% 89%
Compounded Sales Growth
10 Years:22%
5 Years:7%
3 Years:7%
TTM:4%
Compounded Profit Growth
10 Years:16%
5 Years:8%
3 Years:5%
TTM:19%
Stock Price CAGR
10 Years:26%
5 Years:27%
3 Years:26%
1 Year:74%
Return on Equity
10 Years:22%
5 Years:20%
3 Years:20%
Last Year:19%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
122 126 128 128 234 480 436 439 442 444 436 437
Reserves 2,764 3,225 3,923 5,297 8,947 11,768 14,154 15,996 18,399 19,839 21,376 24,423
Borrowings 2,135 1,806 1,127 1,380 363 700 1,091 1,366 2,397 1,996 3,670 2,901
881 887 1,758 2,179 6,396 6,899 6,844 8,256 9,194 11,168 11,835 11,841
Total Liabilities 5,902 6,045 6,935 8,984 15,940 19,848 22,525 26,057 30,431 33,446 37,318 39,602
604 617 682 1,245 2,594 4,033 4,309 6,460 7,622 7,061 8,872 9,018
CWIP 119 110 167 34 266 568 629 373 240 276 50 118
Investments 3,014 2,908 3,588 4,099 1,472 2,103 1,297 2,396 4,841 7,342 5,848 10,238
2,164 2,409 2,498 3,607 11,607 13,145 16,289 16,828 17,728 18,766 22,548 20,228
Total Assets 5,902 6,045 6,935 8,984 15,940 19,848 22,525 26,057 30,431 33,446 37,318 39,602

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
1,450 464 712 855 1,596 2,448 3,137 4,071 3,554 4,432 4,358 8,094
-2,986 -133 -420 -622 291 -1,865 -1,453 -2,893 -3,319 -2,104 1,081 -5,433
1,222 -287 -317 65 -972 -829 -496 -1,571 -269 -2,251 -4,466 -2,987
Net Cash Flow -314 44 -26 298 915 -246 1,188 -392 -35 77 974 -326

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 82 89 88 90 84 84 80 67 77 73 75 62
Inventory Days
Days Payable
Cash Conversion Cycle 82 89 88 90 84 84 80 67 77 73 75 62
Working Capital Days 83 86 45 39 53 64 70 69 61 43 61 42
ROCE % 31% 27% 17% 19% 46% 33% 28% 24% 25% 26% 22% 23%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
35.96 35.94 35.87 35.90 35.88 35.87 35.85 35.83 35.82 35.79 35.76 35.73
39.16 38.54 38.81 38.94 37.75 39.75 39.67 39.62 37.96 39.05 38.32 36.15
12.44 12.78 11.66 11.86 14.21 12.94 13.20 13.03 14.23 13.54 14.39 16.50
0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17
12.24 12.54 13.49 13.12 11.98 11.26 11.11 11.34 11.82 11.45 11.36 11.44
0.04 0.04 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

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