Tech Mahindra Limited has announced its audited consolidated financial results for the quarter ended (QE) December  2019.

The company witnessed a rise of 6.4 per cent in its quarter on quarter (QoQ) revenue, which stood at Rs 96.55 billion. Additionally, it also reported a rise of 2 per cent in its profit after tax (PAT), which stood at Rs 11.46 billion during the period.

Further, the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 15.63 billion, a rise of 4.2 per cent on a QoQ basis.  However, the company’s margins were down by 30 bps during the period at 16.2 per cent.

Commenting on the results, C.P. Gurnani, Managing Director and Chief Executive Officer (CEO), Tech Mahindra, said, “This is a quarter of strong growth across our communications and enterprise businesses. We continue to win marquee deals and are well poised to capitalise on new market opportunities with technology shifts like 5G, which continues to be a key focus area in the year ahead.”

Further, Manoj Bhat, Chief Financial Officer (CFO), Tech Mahindra, added, “We have witnessed substantial operational and financial metrics improvement with healthy cash flow generation this quarter. We continue to invest in emerging technologies and streamline delivery as we ready ourselves for the next phase of growth.”

Key wins

  • Tech Mahindra has signed a multi-year managed services deal with a global financial services leader in Insurance and Annuities. The engagement includes Managing Applications, Cloud and IT Infrastructure across multiple geographies, while improving efficiencies through Automation and Artificial Intelligence-based operations.
  • Engaged by a logistics service company in UK as a technology modernisation partner digitising their massive operational landscape.
  • Selected by an APAC telco to enable digital operations by driving automation, artificial intelligence and machine learning initiatives and simplification of application stack.
  • Engaged by one of the world’s leading player in sustainable and innovative fibre solutions to extend IT and infra managed services for its recent acquisitions.
  • Selected by a US multinational conglomerate to develop SAP Cloud platform based applications across its businesses.
  • Signed a deal with a leading US based telco to enhance customer experience for wireless customers.
  • Engaged by an American Healthcare Provider for IT modernisation and infrastructure managed services.
  • Enhanced engagement with Leading US based telco in core mobility solutions.
  • Engaged by a global financial services technology company for its network service modernisation and management.
  • Signed a deal with a leading Australian bank for digital transformation and rationalisation of their technology stack.

Acquisition

Tech Mahindra announced the acquisition of 70 per cent stake in Bangalore headquartered Cerium Systems. Cerium will boost the company’s Engineering Services practice in VLSI (Very Large Scale Integration) and Embedded Software.

Commenting on the development, Vivek Agarwal, head of corporate development and portfolio companies, Tech Mahindra, said, “We continue to invest in niche digital assets complementing our service offerings. Cerium provides cutting edge solutions with a strong foothold in global semi-conductor industry.”

Business highlights

  • Tech Mahindra has launched 5G-enabled solution to build wireless and secure ‘Factory of the Future’, in line with the industry 4.0 goals.
  • Tech Mahindra has collaborated with InMobi to offer industry’s first video advertising solution for telecom providers, media and entertainment companies.
  • Tech Mahindra has collaborated with Quantoz, Netherlands-based innovative blockchain technology application incubator to offer blockchain-as-a-service for secure digital payments.
  • Tech Mahindra has signed a Memorandum of Understanding (MoU) with business Finland for research and development in 5G and 6G.
  • Tech Mahindra has signed a MoU with government of Bangladesh to foster growth of digital startup ecosystem in the country,
  • Tech Mahindra collaborates with Atidot, an Israel based InsurTech to offer artificial intelligence enabled solution for life insurance companies.
  • Tech Mahindra has set up its first development center in Timișoara, Romania to focus on networks transformation for key clients in Europe by leveraging 5G technology and state-of-the-art frameworks.
  • Tech Mahindra has signed a MoU with College of Engineering and Technology (CET), Bhubaneswar to set up a centre of excellence (CoE) based on artificial intelligence.
  • Tech Mahindra announced a partnership with Mahindra Technology, Quality and Operations (TEQO), the newly formed renewable energy asset management company, to create digital solutions for the global renewable energy industry.
  • Tech Mahindra has entered into a global strategic alliance with Celonis, a leader in Process excellence software, to drive enterprise performance.