Tech Mahindra - Charting The Growth Path; Company Update :: Edelweiss, PDF link

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We attended Tech Mahindra’s (TECHM) analyst meet held in Pune on November 10, 2014. The meet’s key objective was to give investors a peek into the company’s growth strategy, operations and outlook. Management reiterated its vision of exiting FY16 with a revenue run rate of USD5bn (i.e., USD1,250mn in Q4FY16) via both organic and inorganic opportunities. The primary message we inferred is that it is deepening existing skill sets in database architecture and digital technologies, and replicating the same in its enterprise clients. We remain positive on TECHM given its capabilities in network and database architecture, which are precursors for implementing digital technologies.

Enhancing, strengthening, investing for brighter prospects

TECHM reiterated its vision of exiting FY16 with a revenue run rate of USD5bn via both organic and inorganic opportunities. Enhancing vertical expertise, strengthening market reach and investing in digital technologies will be key focus areas in order to be relevant to clients’ needs. The company has initiated several measures to ramp up its enterprise business, which are yielding significantly higher traction (in existing clients and new logo wins), and has adopted vertical-wise differentiated approach depending upon prevalent trends in those verticals (refer page 2).

Database and digital focus to supplement growth

The company’s expertise in network management and digital technologies is acting as a door opener as these are gaining traction amongst clients. TECHM cited several examples wherein it has added value to clients’ businesses through technologies. It will continue to invest in these technologies even as it retains focus on traditional services. ‘Agility of a start up and maturity of a behemoth’ is the company’s new mantra.

LINK
https://www.edelweiss.in/research/Tech-Mahindra--Charting-The-Growth-Path;-Company-Update/27532.html