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Tech Mahindra anticipates $7 billion in revenue this fiscal year, including $3 billion from its telecom vertical

An official at Tech Mahindra said that the company expects to generate USD 7 billion in revenue for the current fiscal year, of which USD 3 billion will come from the telecom vertical.

New delivery structure may aid growth prospects at Tech Mahindra
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New delivery structure may aid growth prospects at Tech Mahindra

An official at Tech Mahindra said that the company expects to generate USD 7 billion in revenue for the current fiscal year, of which USD 3 billion will come from the telecom vertical.

Tech Mahindra Managing Director and Chief Executive Officer CP Gurnani told PTI that the company has hit a run rate of USD 1 billion (about Rs 8,300 crore), from 5G solutions that it provides to telecom companies.

During the December quarter, Tech Mahindra reported a 5 percent decline in consolidated profit after tax. Revenue from operations, however, increased 20 per cent to Rs 13,734.6 crore from Rs 11,451 crore a year ago.

Tech Mahindra President, Communications, Media and Entertainment Business, and CEO, Network Services, Manish Vyas said 50 per cent of the company's business comes from the America region, 30 per cent from Europe and 20 per cent from rest of the world.

Talking about the impact of the global macroeconomic situation on the company, Vyas said uncertainty still remains across the globe and there will be an intense pressure on cost of services.

"The overall macroeconomic situation still remains uncertain. People will need to conserve as we go forward. It is an important opportunity for us to continue to drive cost optimization through simplification. The broad macroeconomic situation also will evolve as we come out of this uncertain time. People will need to continue to innovate more. Particularly with the whole focus on generative AI as well as the way metaverse will be used by enterprises," he said.

Vyas said that globally the company has acquired 42 new logos this year to whom it is providing network transformation including solutions for private 5G networks.

"It is essentially a network on cloud, software defined network and private network. The growth driver has been a requirement of enterprises to simplify their operations and modernise tracking of their business data," he said.

As 5G networks roll out across the globe, Gurnani said several companies are engaging with Tech Mahindra to simplify, modernise, and monetise their networks.

"We are very keen to look at how the rollout of 5G and deployments will happen. It is a big year from a deployment standpoint. It is a big year for modernisation of the digital stack. I think telcos will look to find adjacencies with fintech, learning, manufacturing, IoT etc for growth. We are very excited about 2023. There are a lot of case studies that will emerge in all these areas," Vyas said.

Monica
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