Tech Mahindra targets $7 bn revenue run rate this fiscal

NEW DELHI: IT company Tech Mahindra expects to soon hit $7 billion revenue run rate for current fiscal year, out of which the telecom vertical is estimated to contribute $3 billion, a top official of the company said on Monday.

Tech Mahindra MD-CEO CP Gurnani said the company has hit a run rate of $1 billion (about Rs 8,300 crore), from 5G solutions that it provides to telecom companies.

“We are at an annual revenue run rate of $6.6 billion. We expect to reach $7 billion run rate for this fiscal. Telecom vertical is expected to contribute $3 billion in this. We have already touched a revenue run rate of $1 billion from 5G services,” Gurnani said at Mobile World Congress 2023.

Tech Mahindra posted a 5 per cent decline in consolidated profit after tax at Rs 1,297 crore for December quarter. 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.

“We believe this trend will continue because we have invested in these geographies. All the sectors within telcos, be it growth of fiber, fixed wireless, new product build and all the transformation on the digital side, have continued to provide us growth,” he said.

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.

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