Though headline revenues at telco-focused, Mumbai-based Tech Mahindra grew by 2% qoq (3% at constant exchange rates), to $296m, operating margins took a hammering, losing over 3 points yoy and qoq to 15.3%. However, management can take some comfort from the fact that they took share from most of their top tier India-based peers, most of whom saw revenues from the telco sector decline qoq.
Tech Mahindra’s profitability is still ahead of sibling Mahindra Satyam (see Mahindra Satyam back in the game), though the latter is about 10% bigger in revenue terms. However, Tech Mahindra has a much larger presence in Europe – almost half its revenues – with shareholder BT accounting for 37% of the total.
TechMarketView Foundation Service subscribers will be able to see our full round-up of the offshore scene in the next edition of OffshoreViews.