Tech Mahindra Ltd

About [ edit ]

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 93,992 Cr.
  • Current Price 971
  • High / Low 1,082 / 503
  • Stock P/E 21.2
  • Book Value 257
  • Dividend Yield 1.55 %
  • ROCE 23.4 %
  • ROE 19.0 %
  • Face Value 5.00

Pros

  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 40.18%

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

Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
8,276 8,630 8,944 8,892 8,653 9,070 9,655 9,490 9,106 9,372 9,647 9,730
6,931 7,024 7,234 7,281 7,347 7,569 8,091 8,360 7,806 7,669 7,752 7,832
Operating Profit 1,345 1,605 1,709 1,612 1,306 1,501 1,563 1,130 1,300 1,703 1,896 1,897
OPM % 16% 19% 19% 18% 15% 17% 16% 12% 14% 18% 20% 20%
Other Income 111 175 81 167 341 217 350 287 416 118 221 33
Interest 30 39 36 28 45 38 55 53 50 40 42 42
Depreciation 281 294 284 270 321 342 385 398 383 372 358 344
Profit before tax 1,145 1,447 1,471 1,480 1,281 1,338 1,474 966 1,283 1,409 1,716 1,544
Tax % 21% 27% 18% 24% 26% 17% 25% 25% 26% 25% 25% 32%
Net Profit 898 1,064 1,203 1,132 959 1,124 1,146 804 972 1,065 1,310 1,081
EPS in Rs 9.16 10.85 12.26 11.52 9.95 11.65 11.87 8.32 10.06 11.01 13.54 11.17

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
4,625 5,140 5,490 6,873 18,802 22,621 26,494 29,141 30,773 34,742 36,868 37,855
3,495 3,721 4,572 5,451 14,619 18,428 22,224 24,956 26,063 28,471 31,365 31,059
Operating Profit 1,131 1,419 918 1,422 4,184 4,193 4,271 4,184 4,710 6,271 5,503 6,796
OPM % 24% 28% 17% 21% 22% 19% 16% 14% 15% 18% 15% 18%
Other Income 69 -298 30 -141 233 106 442 775 1,417 534 1,192 788
Interest 218 100 103 103 80 69 97 129 162 133 192 174
Depreciation 134 144 161 200 522 611 759 978 1,085 1,129 1,446 1,458
Profit before tax 847 877 685 978 3,815 3,618 3,857 3,853 4,879 5,543 5,058 5,953
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
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
Dividend Payout % 6% 8% 5% 5% 15% 22% 35% 28% 33% 29% 32% 59%
Compounded Sales Growth
10 Years:22%
5 Years:7%
3 Years:7%
TTM:3%
Compounded Profit Growth
10 Years:16%
5 Years:8%
3 Years:5%
TTM:10%
Stock Price CAGR
10 Years:20%
5 Years:15%
3 Years:12%
1 Year:89%
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 24,428
Borrowings 2,135 1,806 1,127 1,380 363 700 1,091 1,366 2,397 1,996 2,817 2,870
881 887 1,758 2,179 6,396 6,899 6,844 8,256 9,194 11,168 12,689 11,943
Total Liabilities 5,902 6,045 6,935 8,984 15,940 19,848 22,525 26,057 30,431 33,446 37,318 39,678
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 20,304
Total Assets 5,902 6,045 6,935 8,984 15,940 19,848 22,525 26,057 30,431 33,446 37,318 39,678

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 -5,450
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 -343

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
ROCE % 31% 27% 17% 19% 46% 33% 28% 24% 25% 26% 22% 23%
Debtor Days 82 89 88 90 84 84 80 67 77 73 75 62
Inventory Turnover 33.56 52.40 188.00 12.80 14.31 8.80 5.21 3.71 3.07 2.82 3.70 0.00

Shareholding Pattern

Numbers in percentages

Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
35.98 35.96 35.94 35.87 35.90 35.88 35.87 35.85 35.83 35.82 35.79 35.76
38.65 39.16 38.54 38.81 38.94 37.75 39.75 39.67 39.62 37.96 39.05 38.32
12.84 12.44 12.78 11.66 11.86 14.21 12.94 13.20 13.03 14.23 13.54 14.39
0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17
12.33 12.24 12.54 13.49 13.12 11.98 11.26 11.11 11.34 11.82 11.45 11.36
0.04 0.04 0.04 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

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