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TECH MAHINDRA / MAHINDRA SATYAM: -- Key takeaways
The management expects demand recovery to happen in 2HCY11 for the Tech Mahindra
business.
Tech Mahindra expects the attrition to come down in the coming quarters at both Tech
Mahindra as well as Mahindra Satyam.
The telecom vertical for IT services has been impacted as upgrade cycle of networks /
transformation of networks was stopped suddenly during the recession. Generally the
trend is that total IT spends for telecom companies come down with increased offshoring.
Revenues from the top client have been stable at GBP72 mn for the past 7-8 quarters.
Although the entire BT IT spend has come down, Tech M has been able to increase its
share within the BT account.
Emerging markets is growing robustly for Tech M and now contributes ~15% of revenues.
Tech M has helped 15 telco’s launch operations in the past three years.
Mahindra Satyam – the organization is geared for growth, most of the cost alignment has
been done and further increase in margins would be driven by revenue growth.
Most of the liabilities regarding the Satyam dispute have been taken care of apart from
the class action law suits which could take anywhere between six months and three years
to settle.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TECH MAHINDRA / MAHINDRA SATYAM: -- Key takeaways
The management expects demand recovery to happen in 2HCY11 for the Tech Mahindra
business.
Tech Mahindra expects the attrition to come down in the coming quarters at both Tech
Mahindra as well as Mahindra Satyam.
The telecom vertical for IT services has been impacted as upgrade cycle of networks /
transformation of networks was stopped suddenly during the recession. Generally the
trend is that total IT spends for telecom companies come down with increased offshoring.
Revenues from the top client have been stable at GBP72 mn for the past 7-8 quarters.
Although the entire BT IT spend has come down, Tech M has been able to increase its
share within the BT account.
Emerging markets is growing robustly for Tech M and now contributes ~15% of revenues.
Tech M has helped 15 telco’s launch operations in the past three years.
Mahindra Satyam – the organization is geared for growth, most of the cost alignment has
been done and further increase in margins would be driven by revenue growth.
Most of the liabilities regarding the Satyam dispute have been taken care of apart from
the class action law suits which could take anywhere between six months and three years
to settle.
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