TECH MAHINDRA Tech Mahindra (TechM) is a USD 6 Bn+ global IT services franchise specialising in digital transformation, consulting, and business re-engineering, with extensive competencies in next-generation technologies. TechM’s ability to integrate its diverse capabilities across industries and service lines and to leverage partner companies’ strength positions it as a preferred technology partner. TechM has forged significant partnerships with industry giants like Nvidia, Google Cloud, and Qualcomm, enhancing its capabilities in AI and digital solutions. With a focus on operational efficiency and sustainability, TechM aims to deliver exceptional value to its clients while maintaining a strong commitment to Mahindra values and ESG goals. TechM has continued to underperform versus its peers on growth and margins over the last several years. With a view to change this, TechM has embarked on a three-year turnaround journey targeting growth, executional excellence, and organisational restructuring to bolster long-term revenue growth and margins. These efforts are led by a mix of new and veteran leaders with a deep understanding of the IT services industry. The initial efforts from the team have resulted in TechM emerging from a low point in EBIT Margins in FY24 to double digit exit margins in the 4th quarter. This was achieved through a combination of actions focused on improving service delivery, reducing costs and strengthening client relationships. TechM has also taken bold steps towards a better mix of businesses with strong wins in the Banking and Financial Services (BFSI) and Manufacturing sectors. Strategic Imperatives TechM’s ‘Scale at Speed’ strategy towards its FY27 vision has 3 significant strategic imperatives: • Growth Strategy - Topline Growth: This growth strategy focuses on winning large deals, maintaining industry leadership in Telecom and Manufacturing, and expanding into BFSI, Healthcare, and Retail. It aims to strengthen its presence in key markets like the US and Europe while driving growth through high-demand services such as Next-Generation Technologies, Cloud and Infrastructure, Engineering, and Digital Enterprise Applications. • Margins Improvement: A relentless focus on delivery excellence and stringent operational parameters ensures consistent quality and efficiency across all engagements. TechM aims to achieve significant productivity gains through enhanced synergy across its portfolio companies, fostering collaboration and resource optimisation. • Organisation Strategy: TechM has implemented a 4-pronged culture building framework – ‘Simplify, Clarify, Innovate and Perform’. It comprehensively covers the entire employee lifecycle with a focus on simplified processes, clear incentives, transparent communication and unified organisational goals. Key Highlights In FY25, TechM laid a strong foundation for the transformation journey. • A simplified and fully integrated sales organisation saw a surge in large deal wins for the year, with significant inroads into verticals like BFSI, Healthcare and Retail. • Delivered strong margin expansion through gains from Project Fortius focused on service delivery, higher price realisation, pyramid optimisation and automation. • Reported ROCE at 21.3%, up 880 bps YoY. • Returned 85% of FCF to shareholders in FY25. Achievements in FY25 $2,680 Mn New deal wins, up 43% YoY 9.7% EBIT margins with a sharp increase of 360 bps YoY 4 Days Improvement in DSO, 88 (FY25) from 92 days (FY24) Integrated Annual Report 2024-25 | 24
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