TECH MAHINDRA Q3 revenues up by 26%

MUMBAI, January 22, 2008

Key highlights:

• Net profit after tax of Rs 199.5 crores and revenue of Rs 970.4 crores

• Net profit after tax grew by 19% and revenue grew by 26%, over the corresponding quarter of the previous year

• Number of clients increased to 105

Financial Summary

Tech Mahindra Limited, one of the largest solution providers in the telecom space, announced a 19% growth in net profit after tax and 26% increase in revenue for Q3 FY08 over the corresponding quarter in the previous year. Tech Mahindra reported consolidated net profit after tax, before extraordinary items, of Rs 199.5 crores for Q3 FY 08 as against Rs 167.4 crores in Q3 FY 07. The company's revenue is Rs 970.4 crores for Q3 FY08 as against Rs 769.2 crores in Q3 FY07.

The number of clients increased from 96 in Q2 FY 08 to 105 in Q3 FY 08. The number of clients generating revenue of more than USD 15 m annually went up from 4 in Q2 FY 08 to 6 in Q3 FY 08.

The company derived 20%, 70% and 10% of its revenues in the current quarter from the US, Europe and ROW regions respectively. Revenues grew 33% 22% and 46% in the US, Europe and ROW regions, respectively.

Mr. Vineet Nayyar, Vice Chairman & MD, Tech Mahindra said, “Tech Mahindra continues on its growth trajectory by adding new clients and bringing in improved efficiencies for better profitability”.

Operations

Tech Mahindra launched a new business management centre based on a shared services framework for a tier one operator providing networked IT and telecom solutions. The centre will deliver back office functions for more than 50 of the operator’s clients. The shared services framework will enable the operator to achieve increased accuracy and efficiency in their billing and inventory systems, in addition to improved response times.

Tech Mahindra has been selected as an offshore partner by one of the largest cable providers in North America. As a part of this project, Tech Mahindra will enable the delivery of video, phone and high speed internet services to homes and businesses using simulation and modeling techniques. The engagement will enable the client to achieve higher efficiency and accuracy in deploying services.

In the Telco transformation domain, Tech Mahindra has been commissioned by a leading Canadian telecom service provider for their transformation initiative to introduce new technologies. This initiative is focused on deploying services to re- engineer and automate fulfillment processes for voice and data products. This engagement will help the TSP accelerate introduction, design, development and integration of next generation services.

In the OSS – BSS domain, Tech Mahindra has been selected as a preferred vendor for complete IT transformation project by a telecom services provider in Bahrain. This service provider provides fixed, mobile and internet services to government and corporate clients. The transformation initiative will consolidate all the BSS-OSS applications. Tech Mahindra’s core competency in the field of executing critical telecom transformation projects as provided a significant advantage to the customer.

In the OSS - BSS domain, Tech Mahindra has been commissioned by a Wi-Max services provider in the UK to launch a set of wholesale Wi-Max wireless communication products in the UK. Tech Mahindra has the responsibility of implementation of the complete BSS and OSS stack. The solution will enable realization of clients vision of being the first provider in the world to launch Wholesale Wi-Max services giving the customer the freedom of wireless broadband with new technology that will liberate internet connectivity.

In the testing domain, Tech Mahindra has won an engagement with a North American MVNO to set up a test factory for testing Billing and OSS systems. This will enable the client to speed up the market rollout of their products by providing automation, integration and validation testing solutions.

Tech Mahindra has won a deal with another MVNO in the MEA region. As a part of the agreement, Tech Mahindra will design and develop all components of telecom software for executing the business strategy across the region. The MVNO has gained significantly from Tech Mahindra’s experience of Greenfield implementation of OSS / BSS applications and systems.

In the Next generation networks domain, Tech Mahindra has been commissioned by a European mobile media, entertainment and data communication services provider to develop, deploy and support their next generation platform. This deal is phased over three years and will enable the client to rapidly deploy products and services.

Awards & Rankings

- Awarded the Frost & Sullivan India ICT Award 2007 in the following categories:

- Vertical Growth Leadership Award in Telecom Software

- Product Innovation Award for Enterprise DRM

- Won the Deloitte Technology Fast 50 India Award 2007