beat street estimates as it improved margins by cutting costs
and focusing on efficiency. At the same time, the fifth largest IT services firm has been pushing for more digital deals, which now contributes to over 22 per cent of its revenues, says Vineet Nayyar,
vice chairman, Tech Mahindra
in an interview with Romita Majumdar.
Your revenue from top 5 clients has been going down over the past few quarters. Is that intentional?
As we expand, revenue
from top clients comes down. That is a consequence of growth.
It is also partly affected by the fact that digital businesses have a smaller size.
How is your onsite ratio going to be affected by the increased hiring abroad?
On site ratio will not be affected by hiring in the US.
Instead of people from India going there we will just hire more people there. There won't be a significant difference.
Banking Financial Services and Insurance (BFSI) growth
looks comparatively better because our size is small in BFSI.
It's an optical illusion. Since our base in communication is large, the change in that sector is more visible. Digital business
has contributed to about 22 per cent of total revenue.
Allegations of layoffs have hurt the company image in the last two quarters. Any policy changes that it could lead to possibly?
It's unfortunate that layoffs
occur, but we have to respond to the requirements of the market. In the long-term prognosis, labour intensity will reduce due to automation. Machines
are going to replace human beings. Even though labour intensity will reduce the number of people employed may go up. It's very difficult for anyone to make projections here.
Are you worried about your business in US and UK?
In US, we've not lost any business yet. Our business is growing well. Can't speak for what the future holds, it's for Mr (Donald)Trump to decide and I don't think he's deciding anything these days. With the new president in the White House, the American situation is in a state of flux. Europe is far more promising politically. As for the impact of Brexit, if our business moves out of UK, then we'll have to follow it. The value of British pound may come down so our takings could come down from there.
What were the major headwinds?
Charge of software purchases came down in this quarter. There was also gain from sale of an excess land in Pune.