Immediately pledging USD 955 million (approximately Rs 7,353 crore) to acquire 10 companies in the past, Tech Mahindra will make fewer acquisitions in the new financial year and focus on consolidating them, a senior company official said.
Mahindra Group Company, with a revenue of around USD 6 billion in FY22, will look to acquire in an opportunistic way in the new year, its head of strategy Jagadish Mitra told PTI.
Focus on setting up systems to capitalize on Synergy, and see how the acquired company can help build a larger portfolio. He said acquisitions need to be hired to run the core business.
In the last 18 months, the company has committed USD 955 million for acquisitions of 10 companies in the form of various contracts around the world, mainly to keep an eye on technology, people or revenue streams, which may be the most active. Ahead of mergers and acquisitions among peers.
Its chief financial officer-nominee Rohit Anand said the acquisition-related charges had cut off 1 per cent of its operating profit margin because the pay-related charges had to be accounted for.
In the new fiscal, the company will focus on widening operating profit margins, said Anand, who took office on June 1, adding that the aspiration is to take the operating profit margin in the 14-15 percent band to 13.2 percent.
The company has levers that will be set up to widen profit margins and increase it on a quarterly basis, Anand said, listing ways.
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He said the company would look at deals that would improve its value, benefit the front of use as more juniors hired in the recent past are engaged in the project, exiting businesses associated with governments where it faces cash flow problems. And disconnect from previous investments, including performing at the African company or geographic sub-optimal level.
Mitra said the firm will continue to look for new hubs in western India to act as a delivery hub, adding 15 such facilities already open in FY22 in a bid to reduce high attrition in the larger demand for talent.
The preferred destination will be based on talent availability and other aspects, Mitra said, adding that the potential centers to be considered now cover all regions of the country.
Tech Mahindra’s scrip is trading 1.55 per cent higher at 1,205.95 on the BSE, compared to a benchmark gain of 1.76 per cent.