Tech Mahindra reported net new deal wins worth $716 million for its second quarter ended September 30, 2022, down by 4.5 percent on a YoY basis from $750 million in the same quarter last fiscal year.
Sequentially, deal wins were down by 10.72 percent from $802 million last quarter.
“CME, our largest vertical, continues to grow delivering 3.1 percent QoQ growth and our enterprise business delivered 2.8 percent QoQ. On a YoY basis, CME on constant currency (CC) terms grew 20 percent and enterprise grew by 14.4 percent,” CP Gurnani, CEO and MD of Tech Mahindra said.
“Our large deal pipeline is as robust as or better than ever before,” Gurnani said.
Currently, only 5 percent of the company’s order book is from India-based clients, though most of Tech Mahindra’s global clients have a major presence in India too. This, however, increases the impact of cross-currency headwinds and recessionary pressures on Tech Mahindra’s margins.
"We continue to focus on being resilient and agile to ensure long-term value for our people, customers, partners, and the society at large. While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated and new-age solutions," Rohit Anand, chief financial officer, Tech Mahindra said.
“Most of the focus during the last two three years has been on connectivity which is 5G and customer experience management. Large deal pipeline in terms of robustness and digital transformation is probably one of the best I have seen in the last five years. Americas lead the race and sectorially, CME has a fair amount of large deals. Gratifying part is customer experience management. When it is integrated with the call centres and business process as a service and also with digital CRM capabilities, it has become a unique differentiator,” Gurnani said.
Speaking of its Europe business, Gurnani said he is going to be cautious as its currency is not doing as well against US dollars. He mentioned several industries like consumer electronics and appliances and retail, which have started seeing cracks of slowdown as customers cut back on spending.
Vivek Agarwal, President – BFSI, HLS and Corporate Development, Tech Mahindra, said that the company has consciously invested in building a dedicated team to win large deals for the company.
“We've invested into building a large deal engine and machine very systematically over the last couple of years, and hence what you've seen. This is not only this quarter, we've been in that $700-800 million range each quarter now for I think the last six to eight quarters as compared to what we were before. So it's been a systemic effort on building a dedicated team for large deals, not only winning large deals, but pursuing large deals and creating large transformation opportunities,” he said.
Tech Mahindra announced its Q2FY23 earnings on November 1. Its consolidated net profit dropped by 4 percent YoY and stood at Rs 1,285 crore. This was a 13.6 percent increase on a QoQ basis.
Consolidated revenue from operations for the quarter came in at Rs 13,129.5 crore, growing by 3.3 percent sequentially and 20.6 percent year-on-year. Revenue stood at Rs 10,881.3 crore in the same quarter last fiscal.
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