Financial Performance:

• Revenue: ₹52,988 crores for FY25, with Q4 revenue at ₹13,384 crores (0.3% YoY growth on constant currency basis).
• Net Income: ₹1,167 crores for Q4 and ₹5,138 crores for FY25, with a PAT margin of 8.7%.
• Earnings Per Share (EPS): Total dividend of ₹45 per share for FY25, reflecting a 12.5% growth in dividend per share.
• Operating Income: ₹607 million for the full year, representing a 60% YoY growth.
• Gross Margin: Not explicitly stated, but operating margin for FY25 was at 9.7% (up 360 basis points YoY).
• Operating Margin: 10.5% for Q4 (up 310 basis points YoY).
• Cash Flow from Operations: Free cash flow of ₹1,250 crores for the quarter and ₹613 million for FY25.
• Capital Expenditures: Not specified, but focus on ongoing investments in key areas including technology and capabilities.
• Debt and Liquidity Position: Cash and cash equivalents stood at ₹896 crores at year-end.
• Other Key Financial Metrics: Total deal wins for FY25 were $2.7 billion, reflecting a 42.5% growth YoY.

Business Updates & Strategic Developments:

• Product or Service Launches: Launched TechM Consulting to enhance advisory services.
• Market Expansions: Growth in ROW (Rest of World) markets by 5.9%; emphasis on prioritizing APJ markets.
• Partnerships & Collaborations: Expanded partnerships with Google Cloud and formed alliances with Qualcomm and Rakuten Symphony.
• Acquisitions or Divestitures: No new acquisitions reported; continued focus on pruning non-core businesses.
• Regulatory Approvals or Updates: No updates mentioned.
• Legal or Compliance Issues: None reported.

Industry Outlook:

• Sector-Wide Trends: Telecom and manufacturing sectors are showing signs of stabilization, while BFSI continues to exhibit growth.
• Macroeconomic Factors Affecting the Industry: Continued concerns over global economic conditions could impact discretionary spending.
• Competitive Landscape: Tech Mahindra is positioned well with its diamond-shaped talent structure and focus on technology-driven solutions compared to peers.
• Insights from Competitor Earnings Calls: Competitors are facing similar headwinds in manufacturing and telecom sectors.

Export Business & International Operations:

• Export Revenue & Growth: Growth in ROW markets, particularly in APJ.
• International Market Expansions & Challenges: Focus on expanding in Europe and APJ with strategic investments.
• Foreign Exchange Impact: Not explicitly discussed, but some minor FX tailwinds reported.
• Regulatory or Trade Policy Impacts: No specific impacts mentioned.
• Export Outlook: Positive outlook based on diversified portfolio and growing demand in priority markets.

Domestic & International Business Risks:

• Domestic Market Risks: Increased competition and regulatory changes could impact growth.
• International Market Risks: Currency volatility and geopolitical concerns may pose challenges.
• Operational Risks: Supply chain disruptions and high operational costs noted as challenges, particularly in manufacturing.
• Economic & Macroeconomic Risks: Inflation and interest rate increases impact consumer spending.

Forward Guidance & Future Targets:

• Revenue & EPS Projections: Management aims to achieve growth exceeding the industry average; revenue target range of $600-800 million for FY26.
• Other Key Metrics Forecasts: Focus on margin improvement to reach 15% by FY27.
• Management's Confidence Level on Meeting Targets: Cautiously optimistic, acknowledging current macroeconomic challenges.

Promises & Commitments Tracking

New Commitments Made in this Call:

• Launch TechM Consulting to enhance advisory capabilities.
• Establish a Manufacturing Experience Center in Chennai for AI-driven innovations.
• Commit to sustainability targets with net-zero goals by 2035.

Status of Previous Promises:

• Completed/Fulfilled Commitments: Successfully stabilized revenue after prior declines; improved customer satisfaction metrics (NPS).
• Ongoing Commitments: Continued focus on Project Fortius for operational efficiency and margin improvements.
• Delayed or Missed Commitments: None specified, but management highlighted macroeconomic challenges.

Capital Expenditure & Investment Plans:

• Planned vs. Actual Execution: Investments aligned with strategic growth plans; no delays reported.
• Major Investment Areas: Emphasis on technology enhancements, talent development, and strategic partnerships.
• CapEx Trends Compared to Prior Periods: Increased focus on CapEx for technology and consulting services.

Profitability & Margin Analysis:

• Margin Expansion or Contraction: Operating margins expanded due to operational efficiencies and strategic decisions.
• Cost Management Measures: Implementation of Project Fortius to streamline operations and reduce costs.
• Operational Efficiency Trends: Continued improvements in cash flow and working capital management.

Shareholder Returns & Capital Allocation:

• Dividend Announcements: Final dividend of ₹30 per share, totaling ₹45 for FY25 with a payout ratio of 104%.
• Stock Buybacks & Other Shareholder Incentives: No announcements made regarding buybacks.
• Debt Repayment & Capital Management: Focus on maintaining liquidity and managing debt levels effectively.

Q&A Session Insights:

• Key Questions Asked by Analysts:
  • Impact of macroeconomic conditions on business performance.
  • Strategies for maintaining margins amid competitive pressures.
• Management's Responses & Clarifications:
  • Emphasized the importance of operational efficiencies and disciplined approach to deal management.
  • Addressed concerns around manufacturing and telecom sectors, highlighting diversification strategies.
• Unanswered or Avoided Questions: None noted; management addressed all queries raised during the session.