Though it had technically broken through the billion-dollar annualised revenue run rate barrier back in June last year, Tech Mahindra, the telecom-focused India-based SI, closed its FY (to 31st March) above that level for the first time. Headline revenues grew by 15% to $1.13b, though operating margins were five points down at 19.6%. Tech Mahindra still garners over 40% of its revenues from its joint venture parent, BT, tallying some £300m of spend in the year. BT still owns just under 24% of the JV after slimming down its holding late last year (see here).
The huge disparity in margins between Tech Mahindra and sibling Mahindra Satyam (see Mahindra Satyam still struggling) will be just one of the challenges facing management when the businesses are integrated late next year.