TechM’s operating margin expanded to 8.5% from 7.4% in the previous quarter and 6.8% a year earlier. “For TechM, we are more stable and more settled to a new organisation structure. That allows us to take better opportunities (from the market). Market is more or less the same, maybe it has improved from a year ago,” managing director and chief executive Mohit Joshi said. Three business segments – manufacturing (6.4%), retail, transport & logistics (4.9%) and healthcare & life sciences (6.1%) – posted growth. But in its largest vertical, communications, revenue fell 9.9% on year and 1.9% sequentially. Also, the segment’s market share declined to 33.1% from 34% the previous quarter. In the Banking, financial services & insurance vertical, revenue fell 1.2% year-on-year but was marginally up at 0.7% from the previous quarter.
BFSI is not only seeing some new opportunities in existing accounts but also has won new clients, Joshi said.
In dollar terms, TechM’s revenue grew 2.6% YoY and 0.7% QoQ to $1.56 billion. In constant currency terms, revenue declined 1.2% YoY and increased 0.7% from the fourth quarter of last fiscal year.
Total deal wins during Q1 grew with a total contract value of $534 million compared with $500 million in the previous quarter.
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