Tech Mahindra Q1 net up 59%

Key highlights:

"� Net profit after tax of Rs 169.9 crores and revenue of Rs 876.3 crore

"� Net profit after tax grew by 59% and revenue grew by 49%, over the corresponding quarter of the previous year

"� Headcount crosses 21,000 mark

Financial Summary

Tech Mahindra Limited, one of the largest solution providers in the telecom space, announced a 59% growth in net profit after tax and 49% increase in

revenue for Q1 FY08 over the corresponding quarter in the previous year. Tech Mahindra reported consolidated net profit after tax of Rs 169.9 crores for Q1 FY

08 as against Rs 106.6 crores in Q1 FY 07. The company's revenue was Rs 876.3 crores for Q1 FY08 as against Rs 587.1 crores in Q1 FY07

The number of clients increased from 83 in Q4 FY 07 to 87 in Q1 FY 08. The number of clients whose annual revenue is more than USD 25 million is 3.

The company derived 19 %, 74 % and 7% of its revenues in the current revenues from the US, Europe and ROW regions respectively. Revenues grew

59% and 66% in the US and Europe regions respectively.

Speaking on the occasion, Mr. Anand Mahindra, Chairman, Tech Mahindra said "Tech Mahindra continues to maintain its dominance in the telecom sphere. Tech

Mahindra's ability to leverage its domain expertise has helped it to show satisfactory results." Mr. Vineet Nayyar, Vice Chairman & MD, Tech Mahindra

said, "Tech Mahindra has witnessed a good quarter thanks to a rapid progress in ramping up its existing customer base and in leveraging its global delivery model to achieve

success. We are confident that this trend will set the pace for the coming year."

Operations Within the BSS domain, Tech Mahindra, in partnership with a leading equipment manufacturer, was chosen by a green field operator in the Middle

East to provide end to end development and integration of their BSS solution. Tech Mahindra will provide billing, customer care and ERP solutions to the client

to enable quick rollout of its services.

Within the BSS domain, Tech Mahindra has also won an engagement to provide system integration and managed services in the billing and customer care area

for a large tier 1 telco. The entire implementation was done using AGILE methodology resulting in faster delivery, greater billing accuracy and reduced

cycle times.

In the OSS domain, Tech Mahindra has been commissioned as the lead systems integrator, with prime ownership for design, integration, build and

deployment of OSS solutions as part of the NGN transformation journey of a Tier 1 Telco. The solution provides a high degree of automation of network

planning and operations and is geared to deliver significant operational cost savings, and enables the rapid realization of new products and services.

In the Testing domain, Tech Mahindra has been commissioned to set up a test factory for a leading provider of outsourced billing and customer care solutions

for the cable and broadcasting industry in North America. This will enable the client to speed up the market rollout of their products by providing automation,

integration and validation testing solutions.

In the BPO space, Tech Mahindra has won a deal with a leading provider of Voice and Data communications to manage their order management function.

This is a significant win for Tech Mahindra since it was won against stiff competition from incumbent players.

Partnerships

In the IPTV domain, Tech Mahindra has partnered with Microsoft for application development and deployment for its TV platform. As a part of this engagement

Tech Mahindra will customize, integrate and develop applications for broadcast quality video and new integrated TV services over broadband networks for

subscribers to operate from their televisions and PC's. A prestigious project to be involved in, it will give Tech Mahindra the opportunity to strengthen and grow its

presence within the IPTV domain.

Tech Mahindra has also entered into a strategic alliance with Sun Microsystems to offer IPTV services to the Indian and Asia Pacific markets. With this alliance, a next

generation IPTV lab would be setup jointly in Pune. This expands the gamut of IPTV services that Tech Mahindra can offer Tier 1, 2 and 3 service providers as a

one stop cost effective solution.

Global Expansion

Tech Mahindra continued to expand its global footprint by setting up a new centre of excellence in Belfast, Northern Ireland.

Human Resources

Tech Mahindra's total headcount increased to 21,146 this quarter from 19,749 in the last quarter.

Corporate Social Responsibility

Corporate social responsibility has always been a significant focus area for Tech Mahindra and this quarter saw the launch of

Tech Mahindra Foundation which has been set up with a corpus of Rs. 250 million contributed by the company and the

employees. The foundation will support important social issues like the education of the underprivileged and support of women empowerment programs through

education.

Other Significant Achievements

1. 6th Largest Software exporters in India as rated by NASCOM in 2006- 2007.

2. Ranked 9th in the Leaders category in the Top 20 Global outsourcing companies "� IAOP

3. Ranked 3rd in the mobile and telecom solutions category by Business Today

4. Rated as one of the top 10 IT companies by Dataquest and Dun & Bradstreet surveys.