Q1 2025 Tech Mahindra Ltd Earnings Call Transcript
Key Points
- Tech Mahindra Ltd (BOM:532755) reported a sequential revenue growth of 0.7% in Q1 FY '25, reaching $1,559 million.
- The company saw robust growth in the manufacturing and healthcare verticals, with year-on-year increases of 6.4% and 6.1%, respectively.
- Tech Mahindra Ltd (BOM:532755) secured new deal wins totaling $534 million, diversified across various industry verticals and key regions.
- The launch of TechM VerifAI aims to facilitate enterprise-level adoption of AI by providing a robust validation and assurance framework.
- The company reported an operating margin expansion to 8.5%, a 110 basis point increase from the previous quarter, driven by cost-saving efforts and operational efficiencies.
- Year-on-year revenue declined by 1.2% on a constant currency basis, indicating some underlying challenges.
- The communications vertical experienced a seasonal decline, partly due to reduced revenues from Comviva.
- The BFSI vertical, despite some new opportunities, is expected to show volatility in revenues due to its relatively small size and early stage of transformation.
- The company did not announce wage hikes for employees, stating they would revisit this decision in the second half of the year based on financial performance.
- Tech Mahindra Ltd (BOM:532755) faces challenges in the telecom sector, which continues to be stressed, although there are expectations of improvement over time.
Ladies and gentlemen, good day, and welcome to the Tech Mahindra Limited Q1 FY '25 Earnings Conference Call. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Joshi, MD and CEO for Tech Mahindra. Thank you, and over to you, sir.
Thank you, and good evening, everyone. When we had met in April, we had announced our strategic narrative, scale at speed, and our overall three-year plan. I'm happy to share with you that in my meetings with clients across the world with employees and with other stakeholders, this strategic narrative has really resonated very well.
Clients across the globe have emphasized their need for a partner that can provide this unique combination of global reach and scale and agility. Q1 FY '25 is also the first full quarter since we have reconfigured the organization structure, and I'm very happy with the progress that we've made in aligning into the new service line structure.
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