Tech Mahindra and Colgate Palmolive - Q2 Results

Tech Mahindra and Colgate Palmolive - Q2 Results

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:43:30+05:30

On 25th October, Tech Mahindra and Colgate Palmolive announced their second quarter results for the Sep-21 quarter. Here is a gist of the quarterly results announcement.

 

Tech Mahindra – Q2 results

Tech Mahindra reported growth of 16.11% in sales for the Sep-21 quarter at Rs.10,881 crore. For the same period, the net profits were higher 25.75% on a YoY basis at Rs.1,339 crore on the strength of solid 17.2% growth in EBITDA and sustaining EBITDA margins at around 18.35. Tech Mahindra grew its active client base to 1,123 clients in Sep-21 quarter compared to just 988 clients in Sep-20 quarter. Revenues from the Americas grew 14.9% while the revenues from Europe grew at a more robust 19.9%. The share of the offshore business increased from 37% to 39%; but still lower than the peer group.
 

Tech Mahindra – Q2 Results

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 10,881

₹ 9,372

16.11%

₹ 10,198

6.70%

Operating Profit (Rs cr)

₹ 1,652

₹ 1,331

24.10%

₹ 1,545

6.92%

Net Profit (Rs cr)

₹ 1,339

₹ 1,065

25.75%

₹ 1,353

-1.07%

Diluted EPS (Rs)

₹ 15.14

₹ 12.11

 

₹ 15.32

 

OPM

15.18%

14.21%

 

15.15%

 

Net Margins

12.30%

11.36%

 

13.27%

 

 

As can be seen from the above table, the 24.1% spurt in operating profits to Rs.1,652 crore was triggered by the 17.2% growth in EBITDA at Rs.1,995 crore. The EBITDA margins at 18.3% have been stable but far lower than the peer group. Tech Mahindra reported OPM of 15.18% for the quarter. The company has also proposed a special dividend of 300% or Rs.15 per share on the par value of Rs.5. 

In terms of business verticals, Tech Mahindra saw growth across CME (communication, media, entertainment), manufacturing, technology and BFSI verticals in the range of 17-18% on an average. One cause for worry is that the attrition rate went up from 14% to 21% YoY. The company closed the quarter with NPM of 12.3%.

 

Colgate Palmolive – Q2 results

Colgate Palmolive reported 5.21% growth in total revenues for the Sep-21 quarter at Rs.1,352.42 crore. However, the net profits were marginally lower by -1.83% YoY at Rs.269.17 crore. Although the sales growth was just a tad above 5%, it managed to sustain growth momentum across brands, with strong penetration in oral care. 
 

Colgate Palmolive – Q2 Results

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 1,352.42

₹ 1,285.48

5.21%

₹ 1,165.97

15.99%

Operating Profit (Rs cr)

₹ 355.87

₹ 363.18

-2.01%

₹ 310.52

14.60%

Net Profit (Rs cr)

₹ 269.17

₹ 274.19

-1.83%

₹ 233.23

15.41%

Diluted EPS (Rs)

₹ 9.90

₹ 10.08

 

₹ 8.58

 

OPM

26.31%

28.25%

 

26.63%

 

Net Margins

19.90%

21.33%

 

20.00%

 

 

For the Sep-21 quarter, the operating profits were lower by -2% at Rs.355.87 crore. Unlike a lot of other consumer goods companies, Colgate was not hit by the raw material cost or fuel spike. Instead, its took a hit on higher inventory costs. As a result, the operating margins at 26.31% in the Sep-21  were a tad lower than 28.25% in the year ago quarter.

In the midst of flat to weak profits, Colgate built on innovations like  toothpaste for diabetics, Vedshakti mouth spray, gentle range of toothbrushes etc. The net profit margins for the Sep-21 quarter at 19.9% was tad lower than 21.33% in Sep-20 quarter. 


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