Tech Mahindra on Monday reported a 15.4 per cent year–on-year (YoY) growth in global revenue to $289.8 million at end of Q1, up by a 4.1 per cent quarter-on-quarter (QoQ) growth.
The report shows that revenue for the first quarter reached. The company has also revealed some new wins during the first quarter for the Middle East and African (MEA) regions. With multiple projects underway across the Middle East, Tech Mahindra is enjoying penetration levels in GCC countries exceeding 100 per cent. Operators are currently seized with the issue of controlling costs, increasing revenues and sweating assets. Tech Mahindra aims at addressing these issues by enabling businesses to focus on core business and handle key functions like IT and networks. Present trends also show an increased focus on market segmentation and customer loyalty.
In the Middle East region, Tech Mahindra has strong relationships with all operators and the company plans to focus on expanding its footprint in Saudi Arabia and is investing in efforts to make that happen. While Tech Mahindra has successfully done projects in the IT space covering OSS, BSS, ERP, EAI etc, the strategy is to offer a broader range of services to operators covering VAS, BPO, e-Security, Infrastructure Management Services and Network Services also to customers and prospects in the Middle East.
“Middle East and Africa are clearly the emerging markets that are crucial for our growth,” said Krishna Gopal, Vice President, MEA Sales, Tech Mahindra. “These markets offer us the opportunity to develop and showcase some of our high end capabilities in terms of consulting, system integration and managed services. Our wins and healthy ongoing traction bears testimony to our growth momentum in the region and we will continue to leverage the same.”
Tech Mahindra also reported that revenue, in terms of a constant currency basis, came to $284.1 million, which increased by two per cent QoQ. The company’s operating profit was $ 54.1 million and showed an increase of 16.6 per cent YoY. Profit After Tax (PAT) was $61.7 million, driving in a 96.3 percent YoY increase and a 203.6 per cent QoQ. Tech Mahindra has also posted a total head count of 42,850 with 27,920 software professionals, 13,804 BPO employees and a support staff of 1,126. The company added 4,517 personnel during the first quarter, where 2,793 were in BPO.
“We continue to build our business portfolio at a measured pace, despite low discretionary spend in the telecom vertical. This has been enabled by our diversification into new geographies and customers,” said Anand Mahindra, Chairman, Tech Mahindra.
“We have aligned ourselves with changing customer priorities and needs, which has helped us navigate in these volatile times. Our continued focus on core competencies has enabled us to show sustained growth across our key clients and geographies. The changing macro economic conditions could pose new challenges, which we are closely monitoring,” Vineet Nayyar, Vice Chairman, MD and CEO of Tech Mahindra, said.