earnings | IST

Tech Mahindra posts a mixed Q4; mgmt expects deal wins to continue

Tech Mahindra posted a mixed set of Q4 earnings. While revenue and profit came in below street estimates, margins and deal wins are quite strong this quarter. CP Gurnani, MD & CEO of Tech Mahindra and Milind Kulkarni, CFO of Tech Mahindra spoke to CNBC-TV18.

Tech Mahindra posted a mixed set of Q4 earnings. While revenue and profit came in below street estimates, margins and deal wins are quite strong this quarter.
CP Gurnani, MD & CEO of Tech Mahindra, and Milind Kulkarni, CFO of Tech Mahindra spoke to CNBC-TV18.
Gurnani said, “I would not say that there was ever a miss on the revenues because ultimately the analyst and the investor community makes its own assumptions. Tech Mahindra has never given any guidance. From our perspective, it was always very clear that we are treating FY21 as a year in which we would be looking at the better balancing of our portfolio, looking at pressing harder on the operating levers and number third invest a lot more on what we called human experienced management and 5G.”
On deal wins he said, “I would consider getting into FY22 with a tailwind because when you have a good healthy order backlog your focus is on execution. The deal wins are almost 50-50 in telecom business and the enterprise business group.”
On margins, Kulkarni said, “We have started improving operation efficiency last year itself and the momentum is expected to continue. We will get operation efficiencies from off-shoring, from sub-contracting control, though utilisation may not be a great factor there will be automation. Add to that will be leverage because of the higher growth so that gives us confidence that we should be able to continue the momentum upward.”
On outlook on the organic growth for next year, Gurnani said, “We don’t give guidance, all I said in yesterday’s press meet was that considering, I expect a similar quarter of deal wins. I do believe that we would be able to grow our business double-digit in FY22. The way the indications are right now, we should be able to grow our business together organically 10 percent. Since Mahindra group never gives guidance, I won’t be able to spilt it, but assumption today is enterprise will grow faster than communication.”
For full management commentary, watch the video