Tech Mahindra on July 25 said it is currently working on 60 metaverse projects across 25 clients globally. The IT services company, which announced this during its Q1FY23 results, clocked in $802 million total contract value (TCV) of deal wins for the quarter ended June 30, 2022, in line with the management’s estimations.
In Q4FY22, TCV of deals stood at $1.01 billion while in the same quarter (Q1) last year, it was at $805 million.
ALSO READ: Tech Mahindra hired 6,862 freshers in Q1, attrition rate declined
“It (metaverse) is one of our fastest growing verticals, we announced this practice in February this year. We are already working on about 60 projects globally and for 25 customers. They are coming from Edtech, Retail, automotive deal management, repair and maintenance of cars--- we are seeing different kinds of customer base but it is clearly one of our fastest growing verticals,” CP Gurnani, CEO and MD, Tech Mahindra said while addressing the media.
In terms of overall deal wins, communications, media and entertainment (CME) grew 19.1 percent YoY, which contributes over 40 percent to Tech Mahindra’s revenue. Technology vertical grew by 30.3 percent YoY and BFSI grew about 20 percent YoY.
Profit plunged
Tech Mahindra’s profit took a hit in Q1, declining 24.8 percent on a sequential basis to Rs. 1,132 crore from Rs. 1, 506 crore last quarter, accounting for pressure in margin performance given the ongoing wage hikes and increase in travel costs.
On a YoY basis, profit was down by 16.4 percent.
“On profitability, considering the investments that we are making, and the fact that we are building new practices, was hit. Overall, we remain positive of our deal pipeline and more enthusiastic about our ability to harness from that deal pipeline. We are happy about the overall investments we made in 5G, IoT, cloud and now in metaverse, all coming together. There’s still a lot of work to be done,” said Gurnani.
He added, “We are confident that we will be presenting to you industry leading growth over the next few quarters, we are also confident that we will have an opportunity to work on the profitability levers. We have identified where we would focus and in the next few quarters we are determined to work on and deliver profitability.”
Remains ‘watchful’
Just like peers TCS and L&T Infotech (LTI), Tech Mahindra addressed a the performance with an air of caution due to the ongoing macro headwinds.
Gurnani highlighted, “In different parts of the world, there are signs of worry regarding the economic headwinds, related to inflation, energy crisis and how different sectors will respond if there’s a slowdown. Tech Mahindra has looked at all sectors and what-if scenarios, and all I can say is we as Tech Mahindra will continue to deliver stronger performance.”
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
