Tech Mahindra Revenue: Target $3 Billion From Telecom Business

The telecom vertical is expected to contribute $3 billion to the IT company Tech Mahindra. Tech Mahindra revenue expects a $7 billion run rate for the current fiscal year, a top corporate executive said on Monday.

CP Gurnani who is the MD and CEO of Tech Mahindra said, that the business has achieved a run rate of $1 billion (about Rs 8,300 crore) from the 5G solutions it offers to telecom companies.

We are currently generating $6.6 billion in annual revenue. For this fiscal year, we anticipate a run rate of $7 billion. $3 billion is anticipated from the telecom industry in this. With 5G services, we have already reached a revenue run rate of $1 billion during the Mobile World Congress (MWC) 2023, Gurnani added.

Tech Mahindra reported a 5% decrease in consolidated profit after tax for the December quarter, coming in at Rs 1,297 crore. Thus, operating revenue increased by 20% from Rs 11,451 crore to Rs 13,734.6 crore.

Manish Vyas, who is the CEO of network services at Tech Mahindra, indicated that 30% of the company’s business originates from Europe, 20% from the rest of the globe, and 50% of it comes from the Americas.

“Since we have invested in these regions, we think that this tendency will continue. Every industry inside telcos, including fibre expansion, fixed wireless, new product development, and all digital transformation has continued to fuel our growth” he added.

Vyas said there is still a lot of uncertainty around the world and that the cost of services will be under a lot of pressure. He was speaking about the effects of the macroeconomic environment on the organization.

“The macroeconomic environment as a whole is still unstable. Going forward, people will need to practise conservation. We have a significant chance to advance cost optimization through simplification. When we exit this uncertain period, the general macroeconomic situation will also change. Individuals will need to innovate more going forward. Particularly given the emphasis on generative AI in general and how businesses will use the metaverse “, he added.

According to Vyas, the company has 42 new logos across the globe that it serves with network transformation solutions, including those for private 5G networks.

“Essentially, it is a private network, software-defined network, and network in the cloud. The demand for businesses to streamline processes and modernize data tracking has been the key driver” he said.

According to Gurnani, Tech Mahindra is working with numerous businesses to streamline, modernize, and monetize their networks, and the company’s business will continue to grow as 5G networks are deployed all over the world.

Vyas said, “We are really interested in seeing how 5G deployments and rollouts go. It is a significant year in terms of deployment. The digital stack is being modernized in significant ways this year. For growth, I believe telcos will search for adjacencies like finance, education, manufacturing, IoT, etc. We have a lot of enthusiasm for 2023. Several case studies will be developed in each of these areas”.