Over the past 18 months, Tech Mahindra has pledged $955 million to acquire 10 companies.
Bombay:
Tech Mahindra has pledged more than $955 million (approximately Rs 7,353 crore) to acquire 10 companies in the immediate past, and will be less acquisitive in the new fiscal year and focus on integrating them, said a senior official at the company.
The Mahindra Group company, with revenues of nearly $6 billion in FY22, will look at acquisitions in an opportunistic way in the new year, its chief of strategy Jagdish Mitra told PTI.
“The focus will be on setting up the systems to take advantage of the synergies and see how the acquired company can help create a larger portfolio,” he said, adding that the acquisitions should be made in order to reconcile the core businesses. to drive.
Over the past 18 months, the company has committed $955 million to acquire 10 companies in various deal sizes around the world, primarily with a view to gaining traction over technologies, people or revenue streams, to become one of the most active to be the front runner among colleagues in the field of mergers and acquisitions.
Rohit Anand, the appointed Chief Financial Officer, said acquisition-related costs declined 1 percent of corporate profit margins as depreciation-related costs had to be accounted for.
In the new fiscal year, the company will focus on broadening operating profit margins, said Anand, who will take over the mantle from June 1, adding that the aim is to keep operating profit margin in the 14-15 percent band of 13.2. per cent.
The company has levers that will be deployed to increase profit margin and grow each quarter on a sequential basis, Anand said, listing the opportunities.
He said the company will look at deals that will improve pricing, reap benefits in utilization as more juniors hired in the recent past are deployed on projects, and exit companies like those affiliated with governments where it has to do with cash flow problems and divestment of previous investments, including in companies or regions in Africa that are performing at sub-optimal levels.
Mitra said the company will also continue to look for newer centers in the Indian hinterland to serve as delivery centers, complementing the 15 such facilities already opened in FY22 with a view to reducing high churn from increased demand. to talent.
The destination of choice will be based on talent availability and other aspects, Mitra said, adding that potential centers now under consideration are located in all zones of the country.
The Tech Mahindra scrip was up 1.55 percent at 1,205.95 on the BSE, against gains of 1.76 percent on the benchmark.
