Crafting new pathways
It's a new day. A new world. A new normal. The world has changed in the last six monthsand what we have witnessed weathered and traversed in the last six months has transformedour perspective and how!
As I write this letter we have only started to recover from the immediate impact ofCOVID-19. In a short time the pandemic has had a far-reaching impact globally impactingthe economy our society and human life in all aspects. And yet amidst all of this wehave seen some magnificent examples of human resilience solidarity and innovation.
When the pandemic broke out we had two key priorities - the safety and wellbeing ofour people and business continuity of our customers. We facilitated work-from-home forover 90% of our associates while safeguarding those attending office. We surpassedcustomer expectations with our continuous connect seamless delivery and data securitymeasures.
We adopted a new #DistantButConnected logo to convey our solidarity in the global waragainst COVID-19 as well as our commitment to #WellnessFirst. Leadership teams andsupport functions worked round the clock to ensure associates remained safe connectedinformed and motivated. I thank every TechMighty for staying together as one familyalways but especially during this crisis.
The year that was
In retrospect our focus on becoming an increasingly agile resilient and future-readycompany has helped us overcome changing business challenges in the globally disruptiveenvironment. We were able to leverage our digital prowess to create sustainable solutionscatalyse societal growth and contribute positively to climate action.
Looking at some of the key performance highlights for the year Communications Verticalhas grown by 6.8% in constant currency terms driven by modernisation spend and pre-5Gwork. We announced a strategic collaboration with AT&T to accelerate its networkapplication shared systems modernisation and movement to cloud. The Enterprise businessalthough impacted by weaker macro trends in select verticals grew by 4.7% constantcurrency terms. We signed the largest Enterprise deal in history in Insurance andAnnuities space. We announced net new deal wins of $3.71 Billion significantly higherthan $1.67 Billion in FY19. Our digital offerings were strengthened with the acquisitionof Born Group Mad*Pow Zen3 and Cerium. Our focus on cash collections helped us generate$ 523 Million of free cashflow while we returned capital to our shareholders through thecompletion of our maiden buyback. We also announced a higher dividend ofRs. 15 for FY20.Overall it was a satisfactory year with revenues at $ 5181.9 Million and profit aftertax at $ 566.8 Million.
Our ESG focus: co-creating a better world
We focused on environment social and governance in all aspects of our work and triedto innovatively solve problems by connecting ESG with business results.
We are at par with global practices in technology disruption climate change and waterscarcity among others. We reviewed our operating strategy and business model to alignwith the UN Sustainable Development Goals (SDGs) and re-emerged as a sustainabilityleader becoming one among three Indian companies to feature in the DJSI (Dow JonesSustainability Indices) World Index and one of the 12 Indian companies who are part of theEmerging Markets category.
I am happy with the initiatives we took to reduce our ecological impact. We adoptedsustainable environment-friendly practices in our daily lives through our 3-4-3initiative (Every associate to plant 3 trees a month take 4 carpool rides and volunteer 3hours a month). Our focus on encouraging individual social contribution includedinstitutionalising an award (ISR award) that allowed associates to take time off work todonate to social causes.
We earned the Great Place To Work (GPTW) certification this year: a recognition of ourfocus on diversity inclusion and sustainability even as we continued to create greatexperiences for our associates.
Technology for good
The after COVID-19 world will see human experiences becoming more contactless yet evenmore connected. This is exactly where our competitive advantage will come to the fore: newage tech will determine who survives and thrives as much as tech for good(technology that changes people's everyday lives for the better) will distinguish whomakes a difference.
Our Run-Change-Grow strategy is even more relevant in the current environment as wehelp customers run' their existing businesses in difficult times enable them tochange' by making their portfolio offerings post-covid ready and grow' theirbusinesses by constructing new revenue streams.
As part of our TechMNxt charter we are leveraging next-gen technology such as remotecomputing cloud transformation 5G AI blockchain and cybersecurity to deliver enhancedexperiences for our customers globally.
At Makers Lab we are working in collaboration with customers to deliver innovativesolutions. Some of them like the in-house developed chatbot Entellio have helpedgovernment institutions and customers stay safe during the crisis.
For our people
Our talented workforce is our most valuable asset and reflects our strength resilienceand future readiness. The focus last year was on onboarding the right talent buildingcapability nurturing an innovation-centric work environment and creating an inclusiveempowering and balanced work environment.
Continuing on Innovation journey Tech Mahindra launched K2 its first HR Humanoidwhich took over our HR transactions and created an enhanced employee experience. We alsoimplemented an AI- based facial recognition system to register attendance and monitor theemotional quotient of our employees.
Rising for good
We are building a sustainable future where everyone can access the benefits andopportunities created by technology. As part of our corporate social responsibility (CSR)programmes Tech Mahindra Foundation is working to benefit the overall socioeconomicdevelopment in communities that we operate in.
Our teams were swift in coming forward during the COVID-19 crisis and our associatesacross locations volunteered in food drives and donated leaves salaries award money andcash.
The Tech Mahindra Foundation reached out to the most vulnerable of population -healthcare workers security personnel migrant workers and households from thebottom-most of the pyramid to support them with foodgrains PPEs and medicines.
Everything we do is inspired by a deep sense of purpose. Our values hold us in goodstead and are helping us become more ethical reliable and transparent than ever. I amproud of the way we prepare to deal with the current operating scenario and would like tothank our associates customers and stakeholders for their perseverance and support. Wewill continue to innovate and drive success throughout our ecosystem today tomorrow andbeyond.
C P Gurnani
Managing Director and Chief Executive Officer