We will focus on growth and profitability for the next half of the year: C P Gurnani, Tech Mahindra

 

Tech Mahindra is a USD 4.6 billion company with 117,200+ professionals across 90 countries, helping over 885 global customers including Fortune 500 companies. It represents the connected world, offering innovative and customer-centric information technology experiences, enabling Enterprises, Associates and the Society to Rise. Tech Mahindra is amongst the Fab 50 companies in Asia (Forbes 2016 list). The Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, after-market, information technology and vacation ownership.

NewsBarons provides you the highlights of a media interaction where C P Gurnani, CEO & MD, Tech Mahindra says “We will focus on growth and profitability for the next half of the year.”

NB:Brief us about your Financials?

C P Gurnani: For the second quarter ended September 30, 2017, the Revenue stood at Rs. 7,606 crore, while EBITDA was at Rs. 1,106 crore; margins up 180 bps QoQ, at 14.5%

The Consolidated PAT at Rs. 836 crore; up 29.7% YoY and 4.7% QoQ; margins at 11.0%. Earnings per Share (EPS) was Rs 9.52 for the quarter ended September 30, 2017.

 NB : How was the quarter as a whole?

C P Gurnani: We are happy with continued movement in all round growth. With our DAVID (Digitalization, Automation, Verticalization, Innovation, Disruption) Strategy at play, we have posted reasonably good growth in the quarter across revenue, profit and new business.

I believe that we are bridging the gap between experience and understanding quite well and are displaying agility to embrace changes and opportunities, across all the industries we serve. We have bagged two large deals in communications and BFSI segment.

NB:What is your outlook for the coming quarters?

C P Gurnani: We will focus on growth and profitability for the next half of the year. We see healthy growth in communication and media segment.

NB:What was the deal wins for the quarter?

C P Gurnani: The company bagged a contract from a large Communication Service Provider from APAC region for testing and validation services

A leading bank in North America has engaged Tech Mahindra for setting up its Center of Excellence (CoE) for Robotics Process Automation.

The company was Chosen by a leading North American retailer to provide business process management services and improve Customer Experiences by ensuring high service quality.

It also bagged contract from American auto ancillary major to optimize its IT infrastructure deploying digital tools and technologies.

NB:What was the total headcount for the quarter?

C P Gurnani: The total headcount at 117,225.The Software headcount stood was at 75,587; BPO at 35,287.During the quarter, the company has made significant progress in training the employees in various digital technologies as a part of the measure to make them future-ready.

At the end of the Q2, close to 70% of the total employee starting from delivery to sales and support have completed training in different modules of Digital technologies such as Big Data/Analytics, Cloud, Mobility, IoT, AR-VR, Machine Learning, Robotics, Bitcoin, and also in processes and architecture patterns such as DevOps, Agile and microservices depending on the requirements. By end of FY18, the company intends to take the number to close to 80%.

NB:What was the cash and cash equivalent?

C P Gurnani: The Cash and Cash equivalent was at Rs.5,961 crores as of September 30, 2017

NB:What is your revenue mix in terms of geography?

C P Gurnani: About 45% of our revenue comes from US, 30% from Europe and remaining comes from ROW. North America will do well in the coming quarters.

 

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Yash Ved
Yash Ved is a Senior Correspondent at NewsBarons and comes with a decade of experience across leading online and offline publications. A keen observer of the stock index movement, Yash also likes covering Real Estate and the BFSI sector. A financial management and Journalism student, Yash believes learning as a continuous journey and enjoys following the IT and the Pharmaceutical industry and has penned many articles on the subjects.
yash@newsbarons.com
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