Headline revenues at telco-focused offshore IT/BP services player Tech Mahindra remained broadly flat in Q3 yoy, at $299m, some 6% higher than the prior quarter. But this included an unspecified contribution (I’d guess around 1 month) from the acquisition of Hutchison Global Services (HGS), the captive BPS division of multinational telco Hutchison Whampoa (see here). The HGS deal should be worth about $170m p.a. to Tech Mahindra at a cost of $87m. Not yet included in Tech Mahindra’s numbers is the more recent and smaller acquisition of a majority stake in mobile payments developer Comviva Technologies from Indian conglomerate parent Bharti (see here).
It’s really hard to observe any material ‘convergence’ yet between Tech Mahindra and sibling Mahindra Satyam (see Mahindra Satyam; Tech Mahindra – What’s in a brand?). Indeed, judging from the absence of mention in each other’s results releases, one would be forgiven for thinking that the companies are trundling down their own paths pretty much oblivious of each other, despite the fact that Tech Mahindra MD CP Gurnani is also the CEO of Mahindra Satyam. OK, the ‘legals’ on the merger are still yet to be finalised, but you might at least expect a passing nod of acknowledgement to each other along the way.