Tech mahindra
Tech mahindra

Business update for Investors

Communication Business

  • Good performance in the year gone by with the organic constant currency growth of over 21% in US$ terms for FY15
  • FY16 organic communication growth could remain subdued due to delayed decision making
  • Deal pipeline remains healthy

Enterprise Business

  • Registered healthy organic growth in the year gone by
  • Management’s endeavour will be to grow Enterprise business in line or above industry in FY16

Margins

  • Improving EBITDA margin is one of the top priorities for FY16 
    • Target is to improve utilization and recover wage hikes
    • Evaluating all the operational levers on margin efficiencies
  • Successful integration of the newly acquired businesses – LCC and SofGen is another key priority 
    • Management expects that margins on these acquisitions will improve in the coming quarters
  • Automation is a key initiative across the company to achieve some of the margin objectives.

Q1 FY16 has some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis

  • Seasonally weak Mobility business will be a drag on Q1 revenues and EBITDA
  • H1 B visa costs will be another drag on margins
  • Favourable currency movements could help both revenue and margins

Investments in digital technologies, R&D, growth factories will continue in an accelerated mode

Organization wide there is renewed focus on improving operational levers and cost control parameters, however the impact is expected to be visible only from Q3 FY16 onwards

Disclaimer

Certain statements in this release concerning the future prospects of Tech Mahindra Limited (“the Company” or “TechM”) are forward-looking statements. These statements by their nature involve risks and uncertainties that could cause Company’s actual results differ materially from such forward looking statements. The Company, from time to time, makes written and oral forward-looking statements based on information available with the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company

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Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences, enabling Enterprises, Associates and the Society to Rise™. We are a USD 4.5 billion company with 115,850+ professionals across 90 countries, helping over 864 global customers including Fortune 500 companies. Our convergent, digital, design experiences, innovation platforms and reusable assets connect across a number of technologies to deliver tangible business value and experiences to our stakeholders. Tech Mahindra is amongst the Fab 50 companies in Asia (Forbes 2016 list).

We are part of the USD 19 billion Mahindra Group that employs more than 200,000 people in over 100 countries. 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.

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For further information please write to connect@techmahindra.com

For further information please write to connect@techmahindra.com