homebusiness Newscompanies NewsNew Tech Mahindra CEO assumes charge, top 3 things Street is watching from him
New Tech Mahindra CEO assumes charge, top 3 things Street is watching from him
Tech Mahindra has put forth a new organisational framework scheduled to take effect on January 1, 2024. The aim is to streamline the structure, fostering greater synergy and enhancing overall execution efficiency.
Tech Mahindra’s new Managing Director and Chief Executive Officer Mohit Joshi has officially taken over today. The market is optimistic about a potential revival of the company under Joshi's leadership, with expectations that he will lead a successful turnaround.
Tech Mahindra has put forth a new organisational framework scheduled to take effect on January 1, 2024. The aim is to streamline the structure, fostering greater synergy and enhancing overall execution efficiency.
Here are the top three things the Street is watching out for:
#1: Delivering industry-average growth rate on a consistent basis.
TechM has underperformed its larger IT peers on both growth and margins.
| CC Rev growth | FY19 | FY20 | FY21 | FY22 | FY23 |
| TCS | 11.4% | 7.1% | -0.8% | 15.4% | 13.70% |
| Infosys | 9.00% | 9.80% | 5.00% | 19.70% | 15.40% |
| TechM Organic | 5% | 4.40% | -4.90% | 13.90% | 10% |
#2: Focusing on improving the margin profile structurally.
The new leader's main goal will be to make the profit structure better.
EBIT % | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 |
Infosys | 24.3% | 22.8% | 21.3% | 24.5% | 23.0% | 21.06% |
TCS | 24.8% | 25.6% | 24.6% | 25.9% | 25.3% | 24.06% |
Tech M | 11.78% | 14.99% | 11.61% | 14.24% | 14.56% | 11.40% |
Q1FY23 | Q2FY23 | Q3FY23 | Q4FY23 | Q1FY24 | Q2FY24 | |
EBIT % | 11.0% | 11.4% | 12.0% | 9.6% | 6.80% | 4.70% |
#3: Driving more business from the non-telecom vertical.
The market also expects him to get more business from areas that are not related to telecom. Right now, 37% of the company's money comes from the telecom sector.
In his prior position, Joshi held the role of President at Infosys, overseeing the banking, financial services, and insurance (BFSI) as well as healthcare sectors.
Tech Mahindra is an Indian multinational information technology services and consulting company. It’s a part of the Mahindra Group with a market cap of ₹1,25,808.26 crore. The company is headquartered in Pune.
Also Read | Tech Mahindra's new sports cloud platform to have immersive experiences, metaverse gamification
For more details, watch the accompanying video
(Edited by : Amrita)
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