According to Milind Kulkarni, chief financial officer at Tech Mahindra, three factors helped the company report a better margin. The mainstay communications business, which generates about 42% of Tech Mahindra’s revenue, remains sluggish, barely seeing any growth. But thanks to better performance in other business verticals, notably technology, the overall sequential revenue growth in US dollar terms stood at 2.5% in Q3. Tech Mahindra’s Kulkarni, on the other hand, says headcount has no direct correlation to the revenue growth trajectory because of automation and other changes. While one cannot accurately analyse this risk now, Tech Mahindra investors would do well to keep a watch on this trade-off, if any.

Source: Mint January 30, 2018 02:15 UTC