Quarterly attrition down 3%; eyeing deal wins: Tech Mahindra
Tech Mahindra came out with its Q3 earnings. In an interview with CNBC-TV18, CP Gurnani, MD & CEO, and Rohit Anand, Global Head Business Finance, Tech Mahindra, discussed the earnings and outlook. The company's management mentioned that quarterly attrition saw a decline of 3 percent. Also, the company is betting on a strong deal pipeline, while eyeing future deal wins.
Tech Mahindra came out with its Q3 earnings. The company reported a net profit of Rs 1,368.5 crore for the quarter ended December 2021. Its quarterly net profit increased 2.2 percent sequentially. IT major Tech Mahindra's revenue for the October-December period increased 5.2 percent on a quarter-on-quarter to Rs 11,451 crore. However, its EBIT margin saw a slight dip, it stood at 14.8 percent during the quarter under review, as against 15.2 percent in the July-September period.
In an interview with CNBC-TV18, CP Gurnani, MD & CEO, and Rohit Anand, Global Head Business Finance, Tech Mahindra, discussed the earnings and the outlook.
First up, Anand said that attrition has gone down for the company. He explained that it’s declined by 3 percent on a quarter-on-quarter (QoQ) basis.
He said, “On the attrition side, we have seen a reversal of trend. Our attrition on a quarterly basis has come down by 3 percent. So that’s good versus what we have seen in the last few quarters and we expect that to neutralise the impact on margin as well.”
Meanwhile, Gurnani exclaimed that the company’s revenue rate has hit $6 billion. He explained that it’s the communication vertical that led growth for the company in Q3. Going ahead, he remains confident that the momentum of growth will continue. Elaborating on the revenue growth, he explained that inorganic contribution was 2 percent on a year-on-year (YoY) basis.
He said, “We are now in a USD 6 billion run rate club. Overall, we remain optimistic and we are confident that we would be able to continue with the momentum of growth.”
Looking ahead, Gurnani is eyeing deal wins that will generate revenue in the range of $700million to $1billion. He explained that deal wins are stronger than ever before for the company. He said, “We would like to move the needle for the large deals even higher but from an estimation perspective, USD 700 million to USD 1 billion is a good estimate.”
On the company’s inorganic growth, Anand mentioned that all acquisitions fill in important gaps in the company’s portfolio. Additionally, he clarified the company’s EBIT margin miss. He explained that the company had guided for FY22 margin to be around 15 percent and the company delivered a near about number on that front.
Watch the video for the full interview.
(Edited by : Dipikka Ghosh)
First Published: Feb 2, 2022 11:57 AM IST
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