As Tech Mahindra heads for economic blues in the coming winter, Tech Mahindra CFO, Rohit Anand said the company will continue key investments in Europe and the States to drive growth targets. While experts predict that the economic slowdown in the winter will slow down enterprise spending, Anand said business line, “Anything that happens will be relatively short term in terms of business continuity, we will not make any structural changes to investments in Europe because we want to continue to grow.” “But cost prudence will continue,” added Anand.
Tech Mahindra saw its profits slip by 4 percent YoY for the September quarter, which was largely due to continued investment in key areas of growth as per Anand. “There are few areas where we have continued to invest in, keeping the long-term perspective in mind,” he said. These include investment in program management, skill development, and hiring more freshers to change the operational pyramid. Tech Mahindra plans on hiring as many freshers as it did in FY22, for FY23 as well.
Anand adds that investment in sales and marketing in Europe has delivered in boosting quarterly deal values acquired by the IT major. “We have gone from a per quarter $300-$400 million company to a $700 million-$1 billion company,” he said, “If you see, a majority of our deals come are currently coming from Europe. Post the Europe success, we are doing the same in the States as well.”
Tech Mahindra reported a 4 percent YoY drop in its net profit for Q2FY23 on the back of high fresher onboarding and investments in research and development (R&D) projects. Revenues were up by 21 percent however.
Published on November 6, 2022
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