TECH MAHINDRA Announces Quarterly Results (3QFY21); Net Profit Up 16.1%

Mon, 1 Feb

TECH MAHINDRA has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

TECH MAHINDRA Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	96,546	93,718	96,471	2.9%	-0.1%
Other income	Rs m	3,496	1,175	2,209	88.0%	-36.8%
Turnover	Rs m	100,042	94,893	98,680	4.0%	-1.4%
Expenses	Rs m	80,913	76,688	77,516	1.1%	-4.2%
Gross profit	Rs m	15,638	17,034	18,960	11.3%	21.2%
Depreciation	Rs m	3,848	3,717	3,584	-3.6%	-6.9%
Interest	Rs m	550	399	421	5.5%	-23.5%
Profit before tax	Rs m	14,736	14,093	17,164	21.8%	16.5%
Tax	Rs m	3,629	3,462	4,263	23.1%	17.5%
Profit after tax	Rs m	11,107	10,631	12,901	21.4%	16.1%
Gross profit margin	%	16.2	18.2	19.7
Effective tax rate	%	24.6	24.6	24.8
Net profit margin	%	11.1	11.2	13.1

Year-on-Year Performance:

• The company's operating income during the quarter fell 0.1% on a year-on-year (YoY) basis. The expenses were down by 4.2% YoY during the same period.
• The company's operating profit increased by 21.2% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 19.7% in 3QFY21 as against 16.2% in 3QFY20.
• Depreciation charges declined by 6.9% and finance costs declined by 23.5% YoY, respectively.
• Other income declined by 36.8% YoY during the quarter.
• Net profit for the quarter increased by 16.1% YoY. Net profit margins during the quarter increased from 11.1% in 3QFY20 to 13.1% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 2.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.1% QoQ during the same period.
• The company's operating profit increased by 11.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 19.7% in 3QFY21 as against 18.2% in 2QFY20.
• Net profit for the quarter increased by 21.4% QoQ, while net profit margins increased from 11.2% in 2QFY20 to 13.1% in 3QFY21.

To see how TECH MAHINDRA has performed over the last eight quarters,please visit here.

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TECH MAHINDRA Share Price Performance

Over the last one year, TECH MAHINDRA share price has moved up from Rs 807.5 to Rs 942.0, registering a Gain of Rs 134.5 or around 16.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 25,145.2 (up 1.3%). Over the last one year it has moved up from 16,094.9 to 25,145.2, a gain of 9,050 points (up 56.2%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

Current Valuations

At the current price of Rs 942.0, the price to earnings (P/E) ratio of TECH MAHINDRA stands at 22.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.2 times.