HomeInformation Technology NewsExpect US, UK geographies to bounce back over next 4 quarters, says Tech Mahindra's CP Gurnani

Expect US, UK geographies to bounce back over next 4 quarters, says Tech Mahindra's CP Gurnani

Software services provider Tech Mahindra on Tuesday reported a 7.36 percent year-on-year (YoY) drop in consolidated net profit. Margins declined after straight seven quarters of improvement. CP Gurnani, MD & CEO and Manoj Bhat, CFO of Tech Mahindra, in an interview with CNBC-TV18 shared the growth outlook for FY20.

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By Kritika Saxena  May 22, 2019, 8:39:17 AM IST (Published)

Expect US, UK geographies to bounce back over next 4 quarters, says Tech Mahindra's CP Gurnani
Software services provider Tech Mahindra on Tuesday reported a 7.36 percent year-on-year (YoY) drop in consolidated net profit. Margins declined after straight seven quarters of improvement.


CP Gurnani, MD & CEO and Manoj Bhat, CFO of Tech Mahindra, in an interview with CNBC-TV18 shared the growth outlook for FY20.

“I do believe the foundation that we have laid for the company - network as a business, engineering services as a business, cyber security and blockchain would be the growth levers. Net-net I believe we are running the company at over 30 percent digital and we should be doing better than that. If I had to press the pedal harder then I owed pressed it harder on digital and platforms," Gurnani said.

"The investments we made in digital transformation and VSS, OSS transformation and network service will yield good result," said Gurnani, adding that communication business was also clocking good growth.

“So, overall it has been a satisfactory quarter and year, could have been better, we will strive to do better,” said Gurnani.

On the capital allocation policy, Bhat said, “At an umbrella level we have said that we won’t keep excess cash beyond a certain point with us and if I marry it with we are doing on the business front – some of the cash efficiency parameters have been going up and so cash generation is up on back of better working capital management, better-operating efficiencies, so that is the second element. The third element is deploying capital be it buyback, dividend - it is a programme we want to be consistent in.”
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