Tech Mahindra Q4 revenue jumps 4 per cent

MUMBAI: Tech MahindraBSE 0.45 % reported a 4.3% jump in fourth-quarter (Q4) revenue on a sequential basis, helped by strong growth in its manufacturing business and in telecom services and the company backed its target to reach $5 billion in revenue by FY15.

Tech Mahindra, which ended the year with revenues just above $3 billion, has said it would look at large acquisitions to meet that target.

“In totality, we believe we are on the right trajectory. The entire organisation is committed towards achieving the Mission 2015 and we are working towards it,” CEO CP Gurnani said on a post-earnings video-conference from New York.

Q4 revenue rose to $825 million and the company reported a profit after tax of $101 million. Tech Mahindra’s operating margin stood at 21.3% at the end of the quarter.

The board of the company, which gets close to 50% of its revenue from the US market, is in New York to meet with clients and present a more global face, executive vice-chairman Vineet Nayyar said. “They have been getting more growth in the US and are seeing traction in the pipeline. We expect them to do alright, given the challenges with the BT revenue,” an analyst with a Mumbai-based brokerage said.

He declined to be identified. Tech Mahindra won contracts with a total value of $270 million during the quarter and more than $1 billion for the year, the company said.

“Our pipeline has been growing every quarter. I wish I had more years like this one and more quarters like this one,” Gurnani said.

But there are challenges ahead of the fifth-largest India-listed IT company. “Even though the revenue from BT is falling, you should realise that we have the largest share of their spend wallet.

The decrease is happening because BT is cutting spending on IT. But we are still growing our business,” executive vice-chairman Nayyar said.