TECH MAHINDRA Q3 revenue up by 4.0% over the previous quarter

MUMBAI, January 22nd, 2010:
Key highlights:

• Revenue of Rs 1,187.3 crores and net profit after tax of Rs 172.8 crores
• Revenue grew by 4.0% and net profit after tax grew by 2.3% over the previous quarter
• Headcount crosses 30,000 with a net headcount addition of 3,889 during the quarter
• New organization design to leverage the company’s collective capabilities and provide an integrated end to end experience to customers

Financial Summray

Tech Mahindra Limited, a leading solution provider in the telecom space, announced 4.0% growth in revenue and 2.3% growth in net profit for Q3 FY10 over Q2 FY10. Tech Mahindra reported consolidated net profit of Rs 172.8 crores for Q3 FY10 as against Rs 169.0 crores in Q2 FY10. The company's revenue was Rs 1,187.3 crores for Q3 FY10 as against Rs 1,141.8 crores in Q2 FY10.

During the quarter the company received Rs 968.2 crores as contract restructuring fees on certain long term contracts. The company repaid Rs 450 crores of debt using part of these funds. The Company has a debt of Rs. 1,744.2 crores as of 31st December, 2009.

The company derived 30.0%, 55.9% and 14.1% of its revenues from the US, Europe and Rest of the World respectively.

These numbers do not include Mahindra Satyam financials.

Tech Mahindra consolidated head count increased from 26,515 in September 2009 to 30,404 in December 2009.

In this quarter, Tech Mahindra restructured its organization to improve customer centricity and to address the changing needs of the marketplace. The 3‐layered structure has a Sales & Marketing layer focused on addressing market opportunities, a Solutioning & Service Delivery layer to leverage the multiple capabilities created within the company, and Strategic Delivery Units to drive engineering excellence.

Mr. Anand Mahindra, Chairman, Tech Mahindra said, “During the quarter we saw definite signs of revival in activity across most of our customer base. We are well positioned to partner with our customers as they look to take advantage of the global sourcing model”.

Mr. Vineet Nayyar, Vice Chairman, Tech Mahindra said, “Our investments in building capabilities and focus on emerging markets are beginning to pay dividends.”

Mr. Sanjay Kalra, CEO, Tech Mahindra said, “Our recent wins are a sign that the market values our integration of IT, Infrastructure and BPO services in the telecom domain”.

Key Wins

Tech Mahindra has been selected as the preferred partner for a multiyear migration
program by a large telecom operator in Europe. Tech Mahindra will take end to end
ownership of the migration program which will help the operator serve its small and
medium business customers better.

Tech Mahindra has partnered with one of the leading telecommunication equipment
providers to implement a network management system for one of India’s largest GSM
service providers. This platform will enable the service provider to optimize the
performance of its network.

Tech Mahindra was chosen by an emerging telecom operator in India for managing its
customer service desk. Tech Mahindra will ensure enhanced customer experience for the operator’s subscriber base.

Tech Mahindra has entered into an engagement with a leading communication systems & solutions provider to the financial services segment in the US. Tech Mahindra will help the client in product design and engineering to meet the changing needs of the marketplace.

Tech Mahindra was chosen as the lead partner in a multiyear deal with one of the largest telecom companies in North America to provide application development and testing services for their customer service applications portfolio. This will enable the customer to drive operational efficiencies through global sourcing and vendor consolidation.

About Tech Mahindra

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunications plc. With total revenues of Rs 4,464.7 crores in the year ended March 31, 2009, Tech Mahindra is India’s 5th largest software, and serves telecom service providers, equipment manufacturers, software vendors and systems integrators. Tech Mahindra solutions enable clients to maximize returns on IT investment by achieving fast time to market, reduced total cost of ownership and high customer satisfaction. Tech Mahindra achieves this through its domain and process expertise, distinctive IT skills, research and development, proven innovative delivery models and approach to off shoring.

Assessed at SEI‐CMMi Level 5 and PCMM Level 5, Tech Mahindra's track record for valuedelivery is supported by over 30,000 professionals who provide a unique blend of culture, domain expertise and in‐depth technology skill‐sets. Its development centres are ISO 9001:2000 & BS7799 certified. Tech Mahindra has principal offices in the UK, United States, Germany, UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, Philippines, Canada & Australia.