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Informist, Thursday, Apr. 24, 2025

 

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--Tech Mahindra: Jan-Mar sales hit by delays in customer renewals from US
--CONTEXT: Tech Mahindra mgmt comments at post-earnings press conference
--Tech Mahindra: Weakness in automotives hit manufacturing vertical Oct-Mar
--Tech Mahindra: Jan-Mar deal wins broad-based across verticals, geographies
--Tech Mahindra: Jan-Mar BFSI vertical revenue up on back of recent deals
--Tech Mahindra: Saw slowdown in hi-tech vertical in course of Jan-Mar
--Tech Mahindra: Demand visibility "little muddy" now
--Tech Mahindra: FY26 hiring will depend on demand visibility
--Tech Mahindra:Some clients in wait and watch mode due to US tariffs impact
--Tech Mahindra: See deals momentum in Europe as positive
 

 

By Rajesh Gajra

 

NEW DELHI – Tech Mahindra Ltd.'s staff hiring in 2025-26 (Apr-Mar) will depend on demand visibility, which "is a little bit muddy just now", the company's management said at a post-earnings press conference Thursday. The management, however, expects the demand visibility to improve with time on the back of actions taken by the company.

 

The company's deal pipeline at the end of March was robust, but the competitive scenario will likely intensify due to the current uncertain macro environment, the management said. "It is a little bit of a wait and watch scenario from a US standpoint," the management said, referring to the likely hit due to tariffs announced by the US.

 

Tech Mahindra is currently seeing "a lot of positive momentum in Europe," where the company sees "great opportunities" to grow its earnings in FY26, the management said. It said there were opportunities in the US as well, with opportunities in the banking, financial services and industry segment.

 

The current growth in the BFSI vertical, according to the management, is underpinned by early recovery signals in discretionary spending and the investments that the company has been making in engaging with clients "in a more consultative way." The BFSI segment revenue increased 2.4% sequentially in constant currency terms in the March quarter on the back of recent deals, the management said.

 

The 0.2% sequential decline in manufacturing vertical revenue in the March quarter was "on account of weakness in the automobile segment," the management said. The hi-tech vertical revenue declined 8% sequentially in the March quarter due to a slowdown, the management said.

 

The total revenue, in constant currency terms, declined 1.5% sequentially, primarily due to a delay in the closure of a renewal deal with a US hi-tech client, the management said. It, however, expects the client to "come back over the next few months."

 

The deal wins in the March quarter were robust and marked "a continued acceleration" in the "deal win trajectory", the management said. The company's deal wins have been broad-based across verticals and geographies, it said.

 

On Thursday, shares of Tech Mahindra ended 0.4% up at INR 1,445.20 on the National Stock Exchange of India.  End

 

Edited by Saji George Titus

 

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