Brexit, US polls unlikely to majorly impact Indian IT: TechM

Services of the Indian technology companies will be required world-over even though margins might stay volatile or inch lower, feels Vineet Nayyar Vice Chairman of Tech Mahindra.

In an interview to CNBC-TV18 after reporting the fourth quarter earnings, Nayyar says the Brexit issue will certainly have implications of a fairly profound nature on the currency and valuations but the impact of elections in the US may not really have similar implications here.

On the turnaround plans for the recently acquired Lightbridge Communications Corporation (LCC), the company’s MD & CEO CP Gurnani points out that the synergy benefits have already started coming in but growth and profitability is expected to come in next year.Below is the transcript of Vineet Nayyar and CP Gurnani's interview with CNBC-TV18's Kritika Saxena.Q: How do you see the impact of issues such as Brexit or the US elections on IT services?Nayyar: Europe issue - is Britain going to stay or move out, it will have implications of a fairly profound nature including on the currency, including on the valuations etc.US, obviously US elections are going to have an impact. However my perception is that it won't impact India too much. Whatever happens I think Indian technology companies are doing a great job. So, good or bad our services would be required. Margins may go up or margins may come down marginally but it doesn't impact industry in any profound or a permanent fashion.Q: Take through the turnaround plan with respect to LCC and what is the next scalability model that you can drive using your acquisition that you have made in the last one and half years?Gurnani: LCC as a company was not one company . It was actually more like 4 or 5 companies. I genuinely believe that the synergy benefit have already started coming in but more important is growth and profitability will come in in next year. We are going to announce at least two large relationships which reflects SOFGEN prowess in the core banking products and also the synergy of digital transformation that Tech Mahindra brings in, bringing a transformation the digital bank solution that Tech Mahindra brings in and bring in the benefit of having a one stop shop of Products, IT and BSG.