Sunday, December 15, 2019
Home > Production > Tech Mahindra’s regional revenues soar 50%

Tech Mahindra’s regional revenues soar 50%

Dubai: Tech Mahindra, India’s fifth largest software services company, recorded a 50 per cent jump in third-quarter revenues from the Middle East, a top company official told Gulf News.

“The Mideast IT industry is seeing growth across all the verticals. What we saw was an accelerated growth in the utility segment, oil and gas, manufacturing, retail and distribution and public sector,” said G.B Kumar, vice-president and head of Tech Mahindra Middle East, Africa and Turkey.

He said the key growth area is in the enterprise transformation, infrastructure managed services and applications developed.

According to Jyoti Lalchandani, group vice-president and regional managing director for research firm International Data Corporation (IDC) in the Middle East, Africa, and Turkey, the IT spending in the Middle East will exceed $32 billion this year, registering a year-on-year growth of 7.3 per cent.

“Consumers, the public, communications and financial services sectors are expected to be the biggest IT spenders in the region, contributing to nearly 74 per cent of the total IT spending. Public sector investments for improving government services, education and healthcare services will also continue to be key drivers in the GCC,” he said.

The Indian company has recorded a 17 per cent year-on-year rise in profit during the period from the region and contributes $100 million annual revenues to the group’s $3 billion turnover.

The US contributes 46 per cent to the group’s revenue while Europe accounts for 33 per cent and rest of the world at 21 per cent.

“We have added four new clients in the third quarter from the region and have 15 clients in total. Out of 15 clients, around 50 per cent are from the UAE,” Kumar said.

“We expect the fourth quarter to be our record quarter and our pipeline is looking healthy. Expo 2020 will give IT providers a bigger role to play as smart government and smart cities are taking shape,” he said.

The group recorded a 214 per cent jump in net profit to Rs10.1 billion, compared to Rs3.21 billion last year.

Revenues for the quarter rose 33.5 per cent to Rs48.99 billion compared to Rs36.68 billion.