Tech Mahindra has announced its Q4 numbers. It has posted loss of Rs 223 crore as against profit of Rs 196 crore. Revenues stood at Rs 990.7 crore versus Rs 911.6 crore. Margins declined at 22.4% from 23%.

Vineet Nayyar, Vice Chairman, Managing Director and CEO of Tech Mahindra said the business did well given the economic conditions that existed last year.

Excerpts from CNBC-TV18's exclusive interview with Vineet Nayyar:

Q: If you could tell us about this one-time exclusivity payment and how it will work exactly going forward and why it cropped up?

A: You have seen the numbers, I think we have grown quite significantly. This year we have gone up 45% and we did about at the end of the year USD 937 million with earnings going up to USD 191 million, which is also up 41%. So on a perfect earnings growth we are quite satisfied, we have done well given the economic conditions, that existed last year, which is not exactly ideal. In our quest to get secure long-term contracts, we have entered into understanding with the client that we would, if given a certain role to perform, be willing to give them a certain amount of savings over that five-year period. This payment is part of the savings, which they would be securing. So I view this payment as an acquisition of business. But with world differentiator, the level of risk is much lower than if we were to acquire a company.

Last year we entered into a similar contract, we are very happy with the results. It took about two quarters delay before we could run up the business but the contract was extended by a year on that account. On that Barcelona contract or clip rate for exit rate last quarter was around USD 80 million and we will see further expansion in revenue on that account. Similarly we will see a further expansion of revenue though after one or two quarters on account of this contract. So all in all, I think we have entered into series of contracts, which are going to give us a long-term flow of income and revenue and our backlog at this moment over the next five-years time is about in excess of USD 2 billion.

Q: Quick couple of clarifications on who else is part of this consortium and whether indeed this amount paid is unconditional and non-refundable is that correct?

A: Let me assure you one thing that we are commercially secure in this, unfortunately you will have to indulge us because at this moment we are in negotiations we cannot let you know who the other consortium partner is.