After pledging $955 million for the acquisition, Tech Mahindra will focus on integrating the firms | Jobs Vox


Having committed over $955 million (about Rs 7,353 crore) to acquire 10 companies in the immediate past, Tech Mahindra will be less acquisitive in the new fiscal year and focus on integrating them, a senior company official said.

Mahindra Group, with revenues of nearly $6 billion in FY22, will look at acquisitions opportunistically in the new year, its chief strategy officer Jagdish Mitra told PTI.

The focus will be on establishing a system to capitalize on synergies and looking at how the acquired company can help build a larger portfolio, he said, adding that acquisitions should be engaged to drive the core business.

Over the past 18 months, the company has committed $955 million to acquire 10 companies in various deal sizes around the world, mostly to tackle technologies, people or revenue streams, making it one of the most active in M&A ahead of the curve. colleagues.

Its chief financial officer, Rohit Anand, said acquisition-related costs shaved 1 percent off the operating profit margin because depreciation-related costs had to be taken into account.

In the new fiscal year, the company will focus on expanding its operating profit margin, said Anand, who takes over from June 1, adding that the aspiration is to take the operating profit margin in the range of 14-15 percent from 13.2 percent.

The company has leverages that will be deployed to increase the profit margin and grow it on a sequential basis every quarter, Anand said, citing the pathways.

He said the company will look at doing deals that will improve its pricing, reap benefits on the utilization front as more of the younger staff hired in the recent past are employed on projects, leaving companies such as those linked to governments where it faces cash flow problems and abandoning previously made investments, including companies or geographic locations in Africa that are operating at a suboptimal level.

Mitra said the firm will also continue to look for newer hubs in India’s hinterland to act as delivery hubs, adding to the 15 such facilities already opened in FY22 with the aim of reducing large churn amid higher demand for talent.

The selection of destinations will be based on availability of talent and other aspects, Mitra said, adding that potential centers currently under consideration are located in all zones of the country.

Tech Mahindra scrip was trading up 1.55 percent at 1,205.95 on the BSE, compared with a gain of 1.76 percent on the benchmark.

(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content was automatically generated from the syndicated feed.)


Source link

Implement tags. Simulate a mobile device using Chrome Dev Tools Device Mode. Scroll page to activate.