Indian IT services company Tech Mahindra Ltd. ("Tech Mahindra") is upbeat about its performance in the Asia Pacific region.
The company has announced its first set of audited and consolidated results since its formal merger with Mahindra Satyam.
The merged entity recorded revenue of US$724.1 million equivalent for the April-June 2013 first quarter ("Q1'14"), out of which 22 percent (approx. US$159.3 million) came from the Singapore-headquartered Rest of World (RoW) region (which includes the Asia Pacific, India, Middle East, and Africa).
This was an increase of one percent from 21 percent a year ago.
Talking to MIS Asia, Rohit Gandhi, Senior Vice President, Asia, India & MENA, said: "The revenues are on target. We are upbeat about the performance of the Rest of the World region."
For the newly merged entity, this quarter saw a few good wins in the region in what Tech Mahindra describes as the Digital Business building blocks including Networks, Mobility, Analytics, Cloud & Security.
Gandhi said that the top deals for the quarter came from Australia and China.
Two major multi-million dollar deals were secured in Australia. A US$50million non-linear deal was secured with a top financial services firm. "This is an IT and BPO related services deal and it affects nearly 100 people in the bank." This bank is a new customer for Tech Mahindra. "This is a huge deal and revenues will start kicking in from the next quarter."
The other win is an Australian Telco which selected Tech Mahindra for its integration and business analytics services delivery.
Even though China is slowing down, revenues from the engineering and automotive sectors contributed nearly 50 percent of Tech Mahindra's China revenues in the last quarter. Local manufacturers in this sector engaged Tech Mahindra for R&D services. The company also provided engineering services to a medical devices firm.
According to Gandhi, many Japanese firms are moving their manufacturing base from China to Southeast Asia as wages are rising in China. "We have service delivery centres in Southeast Asia and that is helping us in getting business from Japanese companies," he said. Tech Mahindra secured its first substantial deal in Integrated Engineering-and Embedded solutions related services for Japanese firms in the last quarter.
In Singapore, the company closed a deal with a private logistics company to implement a core logistics solution using Oracle. "This is an ERP, analytics and supply chain management-based solution deal," said Gandhi.
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