Tech Mahindra (TECHM) Q4 14/15 earnings summary

Executive summary

• FY15 revenue grew 20.1% YoY to ₹226,213 million (US$3,686 million); growth reflected acquisitions and organic expansion.

• The year ended on a subdued note, with Q4 EBITDA margin among the lowest in many quarters; FY16 priorities include integration and improving operating metrics.

Financial highlights

• Consolidated EBITDA was ₹41,528 million versus ₹41,838 million YoY; PAT was ₹26,277 million versus ₹30,288 million.

• Consolidated profit before tax, minority interest and associate earnings was ₹36,181 million versus ₹36,947 million; FY14 included ₹1,200 million exceptional income.

• Basic EPS was ₹27.46 before and after exceptional items; diluted EPS was ₹26.74, following the 1:1 bonus issue and 2-for-1 share split.

• Operating cash flow was ₹24,087 million versus ₹15,962 million; investing cash outflow was ₹20,922 million and financing cash outflow ₹7,898 million.

Outlook and guidance

• FY16 focus is on integrating acquired businesses and improving operating metrics, alongside growth from transformation frameworks, disruptive solutions and growth factories.

• The solutions roadmap targets cloud-first and mobile-first demand; investment priorities include wearable technology, SDN, NFV, WebRTC, predictive analytics and cognitive robotics.