Q2 2025 Tech Mahindra Ltd Earnings Call Transcript
Key Points
- Tech Mahindra Ltd (BOM:532755) reported a year-over-year growth in several key verticals, including BFSI (4.5%), healthcare and life sciences (4.5%), and retail (4.7%).
- The company achieved a new deal win TCV of $603 million for the quarter, indicating strong deal momentum across key markets.
- Tech Mahindra Ltd (BOM:532755) posted an EBIT margin of 9.6% for the quarter, with a sequential expansion of 110 basis points, driven by cost savings and currency tailwinds.
- The company announced several strategic partnerships, including collaborations with Microsoft and Google Cloud, enhancing its service portfolio and client value.
- Tech Mahindra Ltd (BOM:532755) received multiple awards and recognitions, such as the 2024 Supplier Excellence Award from Navistar and the Diamond Supplier Award from Bombardier, highlighting its industry leadership and commitment to sustainability.
- The manufacturing segment experienced a decline of 4% due to softness in the auto sector, impacting overall growth.
- Despite improvements, the communication vertical showed a year-over-year decline of 1.7%, indicating ongoing challenges in this sector.
- The company faces significant budget pressures from top telecom clients, particularly in the US, affecting revenue from these accounts.
- Tech Mahindra Ltd (BOM:532755) is in a turnaround phase, with the CEO acknowledging potential volatility in the current year.
- The offshore headcount mix increased, but the corresponding revenue growth did not fully reflect this shift, suggesting potential inefficiencies or underutilization.
Ladies and Gentlemen, Good day and welcome to the Tech Mahindra Limited Q2 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Joshi, CEO for Tech Mahindra. Thank you and over to you, sir.
(technical difficulty) Among the other verticals -- among our focus verticals, BFSI reported 4.5% year-over-year growth. In this vertical -- partnerships with existing clients and continue to see new logos signing on. We are focused on better utilization of existing capabilities include those of portfolio companies, which is helping to build the foundation for longer-term growth in the subsegments of insurance, asset management, and payments among others.
All the other verticals have also seen positive momentum for the tech, media, and entertainment reporting a 2.4% YoY growth. Healthcare and life sciences reporting 4.5% YoY growth and the retail segment growing by 4.7% YoY.
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