Deal pipeline, recovery in momentum of telecom triggers for Tech Mahindra

In the near term, profitability is expected to be under pressure before recovering in FY21

A large deal pipeline and a recovery in growth momentum for the telecom vertical is expected boost revenue visibility of Tech Mahindra over the next few quarters. The company won deals to the tune of $3.7 billion over the last six quarters and more than half of this was from the communications vertical. Its deal wins were boosted by the AT&T contract in the September quarter. About 40 per cent of the cumulative deal wins over the last six quarters came in Q2.

The deal wins and upcoming contracts in the enterprise and communications verticals is expected to help the company