By Tech Mahindra reports 92.6% YoY growth in PAT to Rs. 983 crores
PAT margin expansion of 350 bps YoY
Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industries announced the audited consolidated financial results for its quarter ended December 31, 2024.
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* Operational PAT – excludes exceptional item of land sale proceeds in Q2’25 Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “We see an improved rate of deal wins in our key verticals and priortised markets. This coupled with consistent expansion in operating margins, despite cross-currency headwinds during the quarter, reaffirms that we are on track to achieve our long-term goals.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “We delivered growth in EBIT margin and operating PAT, both on a sequential and year-on-year basis, resulting from our targeted actions under Project Fortius, along with steady increase in new deal wins, across prioritised verticals and markets. Our continued focus on optimising working capital management has resulted in generation of robust free cashflow.”
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KEY WINS
- Tech Mahindra won a new logo with one of the largest telecom operators in Europe, by being a strategic partner focused on delivering consolidation and accelerated transformation of the key domains of their Digital, IT and Network ecosystem.
- Tech Mahindra was selected by a large German Telco to support their technology domains across Network, IT, and Service Operations, driving autonomous operations using GenAI driving modernization of operating technology domains through establishment of a focused operations excellence center.
- Tech Mahindra was selected by a global leading Hi-Tech and Mobile company for the end-to-end data services, beginning from data collection to data engineering and release including QA, Automation for their key flagship consumer and enterprise product, helping them gain a competitive edge and deliver an immersive experience differentiated by AI.
- Tech Mahindra won a managed services deal from a leading European auto-maker for supporting their IT landscape covering every aspect of their business operations by leveraging our ADMS and Cloud & Infra Services capabilities.
- Tech Mahindra was awarded a Global Managed Network as a Service (NaaS) deal by a Europe based and one of the largest chemical producers in the world. TechM to leverage its comprehensive capabilities in Network Services across Americas, EMEA, APAC & China.
- Tech Mahindra was selected by one of the largest Telco in Canada to provide frontline Customer Experience services helping client achieve operational efficiencies, while providing enhanced services for its customers by leveraging TechM’s BPS capabilities.
BUSINESS HIGHLIGHTS
- Tech Mahindra announced the launch of TechM agentX—a comprehensive suite of GenAI-powered solutions designed to drive intelligent automation and enhance efficiency for enterprises globally. Through these solutions, enterprises can automate complex business, IT, and data tasks, improving productivity by up to 70%.
- Tech Mahindra announced the establishment of Centers of Excellence (CoE) powered by NVIDIA platforms to drive advancements in sovereign large language model (LLM) frameworks, agentic AI, and physical AI. Based on the TechM’s Optimised Framework, the CoE leverages the NVIDIA AI Enterprise software platform — including NVIDIA NeMo, NVIDIA NIM microservices and NVIDIA RAPIDS — to offer customised, enterprise-grade AI applications to help clients adopt agentic AI in their businesses. The CoE also uses the NVIDIA Omniverse platform to develop connected industrial AI digital twins and physical AI applications across various sectors and industries. The CoEs are located within TechM’s Makers Lab’s at Pune and Hyderabad.
- Tech Mahindra signed a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to develop an Autonomous Networks Operations Platform (ANOP). The platform is built on AI-ML and GenAI services powered by AWS, enabling customers to transition their network operations from an on-premises infrastructure to a real-time proactive and preventive model operating on a hybrid cloud empowering businesses to enhance Network Operations Center (NOC) productivity for teams managing physical and cloud infrastructure by more than 50%, reducing field visits by over 15%, shortening Mean Time to Repair (MTTR) for network and service incidents by more than 30%, and accelerating the implementation of network and service configurations, achieving improvements of over 30% in speed and efficiency.
- Tech Mahindra has collaborated with Universal Scientific Industrial (Shanghai), USI, a global leader in electronic design and manufacturing and in SiP (System-in-Package) technology, to establish USI’s first Engineering Offshore Development Center in India to accelerate innovation in smart device engineering. The collaboration will provide scalable solutions, accelerate time-to-market, and deliver innovative advancements to drive the future of connected devices, additive manufacturing, connected vehicles, and augmented and virtual reality.
- Tech Mahindra announced integration with ServiceNow to drive enterprises into the GenAI era with One E2E Platform, an end-to-end enterprise service management solution. The platform will enable businesses to enhance operational efficiency and competitiveness by integrating GenAI capabilities into their business-critical processes and modernizing infrastructure to be future-ready by combining TechM’s global domain expertise with capabilities from the ServiceNow platform.
- Tech Mahindra and ColorTokens Inc., the leading global enterprise microsegmentation company, advanced their partnership by launching “Breach Ready” microsegmentation solutions. Built on ColorTokens’ industry-leading microsegmentation platform widely recognised for its innovative approach to building cyber resilience and strengthening cyber defense based on Zero Trust security architecture, the solutions aim to enhance cybersecurity posture for global enterprises across industries.
