Tech Mahindra to focus on integrating companies

MUMBAI: Having committed over $955 million (around Rs 7,353 crore) to acquire 10 companies in the immediate past, Tech Mahindra will be less acquisitive in the new fiscal year and focus on integrating them, a senior company official said.

The Mahindra Group company, with revenues of nearly $6 billion in FY22, will look at acquisitions in an opportunist way in the new year, its chief of strategy Jagdish Mitra said.

The focus will be on putting in place the systems to capitalise on the synergies and look at how the acquired company can help create a larger portfolio, he said, adding that the acquisitions need to be engaged to drive the main business.

Over the last 18 months, the company has committed $955 million to acquire 10 companies in varied deal sizes across the world, majorly with an eye on getting a grip over technologies, people or revenue streams, to be one of the most active on the mergers and acquisitions front among peers.

Its chief financial officer-designate Rohit Anand said the acquisition-related charges shaved off 1 per cent from its operating profit margins as amortisation-related charges had to be accounted for.

In the new fiscal year, the company will focus on widening the operating profit margins, said Anand, who takes over the mantle from June 1.