Tech Mahindra Ltd

- The provided transcript from Tech Mahindra's April 27, 2023, call does not mention any plans for new fundraising through debt or equity. - There is no specific discussion about issuing new shares or raising debt in the near future. - The company emphasizes capital allocation by returning cash to shareholders, highlighting a dividend of Rs. 50 per share for FY23, an 11% increase from the previous year. - The focus is on driving productivity, margin expansion, growth, and capital return rather than raising new funds. - Management reassures investors about addressing macro challenges internally without indicating external fundraising needs.

- Tech Mahindra is committed to continuing investments in technology and automation, including AI, predictive technologies, data sciences, cloud, and quantum computing. - The company plans to double investments in people upskilling and technology to stay relevant during the economic downturn. - Prioritization of investments in key markets like Japan and the Middle East is underway to target more large deals. - Structural actions include portfolio synergy, operating rigor, and people transformation as part of execution strategy moving into the next fiscal. - There is ongoing pyramid rationalization and improvement in offshoring rates projected to enhance margins. - Although specific capex figures aren't disclosed, the focus is on long-term business process and system investments. - Overall, Tech Mahindra is gearing up to leverage crisis opportunities by making strategic capital investments to support growth and productivity goals.

- Tech Mahindra experienced a 13.7% constant currency revenue growth in FY23, closing the year at US$6.6 billion. - The communication business grew 13.4%, and the enterprise segment grew 13.9% in constant currency terms. - The company expects a cautious first half in FY24 with subdued growth due to macro challenges and slower decision-making cycles. - A more favorable and robust pipeline and client discussions suggest a growth pickup in the second half of FY24. - Tech Mahindra is optimistic about mid-to-long-term growth driven by cloud penetration, 5G adoption, AI, and data analytics. - Large deal wins were about $3 billion last year, with expectations to do better in the current year as client investments resume. - Overall, the company is geared to capitalize on opportunities arising from current challenges and aims to continue growth momentum.

- Growth in FY24 expected to be cautious in the first half, with improvement in the second half, driven by a more robust pipeline and favorable client discussions. - Margin expansion targeted through multiple levers such as subcontractor cost reduction, improved offshoring, pyramid rationalization, and divestment of low-margin businesses. - EBIT margins expected to improve irrespective of macro scenarios, with structural margin actions underway. - Price increases from FY23 will have carry-forward impacts, with incremental pricing opportunities limited but under continuous pursuit. - Headcount optimization and increased internal fulfillment (from 46% to 71%) are expected to improve productivity and reduce costs. - Return to shareholders remains strong; dividend payout for FY23 was Rs. 50 per share, up 11% YoY. - Long-term outlook remains robust especially in Communication and 5G businesses, with sustained investment in technology and people transformation.

- The company sees a robust pipeline compared to last year, indicating healthy current orderbook status. - Deal discussions are active with favorable and encouraging conversations across customer segments. - Decision-making timelines are elongated with more approval cycles, causing some delays in final sign-offs, particularly impacting short-term order closures. - First half of FY24 is expected to be subdued, with uncertainty around when postponed deals will close. - The team is proactively engaging customers to position solutions aligned with their future needs to drive efficiency and business expansion. - Pricing leverage is expected to be limited in FY24 compared to FY23. - Despite short-term softness, longer-term client engagements, especially in Telecom (5G business nearing $1B run-rate), remain strong. - Overall, management is optimistic about deal wins and revenue growth in the second half of FY24.