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Introduction:
Tech Mahindra Limited is an Indian multinational provider of information technology (IT),
networking technology solutions and Business Process Outsourcing (BPO) to the
telecommunications industry. Anand Mahindra is the founder of Tech Mahindra, which is
headquartered at Pune, India.

Part of the Mahindra Group, Tech Mahindra is a US$4.2 billion company with over 117,000
employees across 90 countries. It provides services to customers which include Fortune
500 companies. It is also one of the Fab 50 companies in Asia, a list compiled by Forbes. Tech
Mahindra was ranked 5 in India's software services (IT) firms and overall #111 in Fortune India
500 list for 2012. Tech Mahindra, on 25 June 2013, announced the completion of a merger
with Mahindra Satyam. Tech Mahindra has 825 active clients as of March 2016.

India is the world's largest sourcing destination for the information technology (IT) industry,
accounting for approximately 67 per cent of the US$ 124-130 billion market. The industry employs
about 10 million workforces. More importantly, the industry has led the economic transformation
of the country and altered the perception of India in the global economy. India's cost
competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US,
continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market.
However, India is also gaining prominence in terms of intellectual capital with several global IT
firms setting up their innovation centers in India.

The IT industry has also created significant demand in the Indian education sector, especially for
engineering and computer science. The Indian IT and ITeS industry is divided into four major
segments IT services, Business Process Management (BPM), software products and engineering
services, and hardware.

1.1 Vision:

We will rise to be among the top three leaders in our choosen market segments
while fostering innovation and inclusion.

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1.2 Market size:

The Indian IT sector is expected to grow at a rate of 12-14 per cent for Financial Year 2016-17 in
constant currency terms. The sector is also expected triple its current annual revenue to reach US$
350 billion by FY 2025. Total spending on IT by banking and security firms in India is expected
to grow 8.6 per cent year-on-year to US$ 7.8 billion by 2017.

Indias internet economy is expected to touch Rs 10 trillion (US$ 146.72 billion) by 2018,
accounting for 5 per cent of the countrys GDP. The public cloud services market in India is slated
to grow 35.9 per cent to reach US$ 1.3 billion according to IT consultancy, Gartner. Increased
penetration of internet (including in rural areas) and rapid emergence of e-commerce are the main
drivers for continued growth of data centre co-location and hosting market in India. The Indian
Healthcare Information Technology (IT) market is valued at US$ 1 billion currently and is
expected to grow 1.5 times by 2020. India's business to business (B2B) e-commerce market is
expected to reach US$ 700 billion by 2020 whereas the business to consumer (B2C) e-commerce
market is expected to reach US$ 102 billion by 2020

The Government of India has launched the Digital India program to provide several government
services to the people using IT and to integrate the government departments and the people of
India. The adoption of key technologies across sectors spurred by the 'Digital India Initiative' could
help boost India's Gross Domestic Product (GDP) by US$ 550 billion to US$ 1 trillion by 2025.

India and the US have agreed to jointly explore opportunities for collaboration on implementing
India's ambitious Rs 1.13 trillion (US$ 16.58 billion) Digital India Initiative. The two sides also
agreed to hold the US-India Information and Communication Technology (ICT) Working Group
in India later this year.

1.3 General Trends of Exports and Imports

During the last few decades, trade in services has emerged as the major contributor to the better
economic performance of India. Services sector contributes about 55% to the countrys GDP.
However, this sector contracted amidst adverse global economic situations. Indias trade in
services also indicated contraction as has been registered by merchandise trade (Exhibit 4). The
net trade in services has slid by 5.61% y-o-y in 2015-16, from $68.26 bn to $64.43 bn. The receipts

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from services fell by $4.08 bn compared to same period last year, showing a decrease by 2.79%.
The payments or imports eased by 0.32%, a fall by $250 mn.
In India, the Information Technology (IT) sector plays a vital role in the growth of the economy.
During the Financial Year (FY) 2016, the Indian IT-BPO sector contributed nearly 9.3% of Indias
GDP with revenues of USD 143 billion. During FY2016, the industrys exports were valued at
USD 108 billion, which was nearly 76% of the total revenue and contributed more than 45% share
in India services exports. This sector is Indias largest and most diverse private sector employer,
with a direct workforce nearing 3.7 million

1.4 Major Players:

The following are Indias Tier 1 companies in the IT sector: Tata Consultancy Services Ltd.
TECH MAHINDRA Technologies Ltd. Infosys Technologies Ltd. Tech Mahindra
The other key players include the following:
IBM , HCL , Polaris , Cisco , KPIT Cummins , Cognizant , Sapient , Mphasis

1.5 Key Competitors:

According to the NSE Standards of the IT Sector the following companies are the key competitors
of TECH MAHINDRA Limited
INFOSYS
TCS
WIPRO
MINDTREE

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Financial Information of
TECH MAHINDRA

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2.1 BALANCE SHEET FOR FINANCIAL YEARS
2015, 2016 AND 2017:

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2.2 Profit and Loss Statement for
the Years 2016 and 2017

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2.3 Cash Flows for the Years 2016 and 2017

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 3. ANALYSIS:

3.1 Findings from Balance Sheet statement:

We can understand from balance sheet that non-current assets has been
increasing from 2015 to 2017.
Inventories from current assets in 2016 is doubled compared to previous year
2015.
Current assets has been increasing in the given period which resulted in
increase of total assets from 2015 to 2017.
Equity and liabilities are also increasing from 2015-2017.
Current assets are increased due to high focus on Investments compared to
2016 , Investments are raised almost double in 2017
Total Non-current liabilities are increased in 2017 is almost double of
previous year.
Current liabilities are maintained in 2017 , by seeing Total current liabilities.
Total equity and liabilities are maintained by balancing assets and liabilities
in respective years

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3.2 Findings from Profit and Loss statement:

We can see that total comprehensive income has been decreased from
accounting year of 2016 to 2017.
Total expenses has also increased gradually which resulted increase in the
profit before tax.
Profit before tax is almost same in financial year 2017 compared to 2016.
However Tax played a major role which remained a small increase in the
profits after payment of taxes.
Earnings per equity share value has come down from 2016 to 2017.

3.3 Findings from Cash Flow statement:

Cash flows from operating activities profit of the year is seen to be increased
from the accounting year of 2016-2017.
Claims and Warranties generated from investing activities is also almost
doubled compared to the accounting year of 2016.
Dividends income and cash equivalents is however decreased resulting in
the digitalisation of the economy.
Bank Balances including current accounts and demand deposits has been
increased from accounting year of 2016-2017.

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 4. SWOT Analysis of Tech Mahindra:

4.1 STRENGTHS:

Tech Mahindra has an impressive roster of telecom operator customers including five
of the top seven European telecom operators and six of the top ten North American
telecom operators. Tech Mahindra received Outstanding Supplier awards from AT&T for
the second year running.
Tech Mahindras telecom revenue base is very impressive and establishes it as a deep
pocketed, well resourced and broadly entrenched services organization with size and
scale advantages that few competitors can match.
Tech Mahindra has a very strong presence in Europe and North America. Of the total
revenue, 54% revenue comes from Europe, 32% comes from North America and 14%
from Rest of world. These figures clearly shows there tight business hold in North
America and Europe.
Tech Mahindra is a very big System Integrator and IT Specialists focused in Telecom
Industry. It is the third company in the world to achieve SSECMM Level 3 rating.
Tech Mahindra has no shortage of offering optimization services, the ability to address
the full gamut of network architectures, equipment agnostically, potentially puts Tech
Mahindra in a stronger position than some equipment vendors (like- Ciena, ECI Telecom,
Tellabs etc.)
Tech Mahindra has strong partnership with some of the very big technology companies
like- Microsoft, CA, IBM, Amdocs, Comverse, Subex, Oracle etc.

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4.2 WEAKNESSES:

In current times all major Telecom Operators and Telecom Vendors are trying to put
their hands in Media Vertical whereas on the other hand Tech Mahindra has no expertise
and products in Media Vertical and this is a big positive for its Competitors.
Tech Mahindra has no partnership with COS (Ericsson, NSN, Alcatel etc.) and
competes directly with them. Partnering with COS can be beneficial in getting more
business. Also Tech Mahindra does not develop telecom equipment hardware as
compared to COS would impact its credibility in deploying, managing or operating
another vendors equipment.
Tech Mahindras major revenue source is Europe and North America. This clearly shows
that it lags in other geographies like- Asia, ANZ, Africa etc.
Tech Mahindras 75% revenue comes from its top 5 clients. Out of this BT contributes
45% and AT&T coming at 2nd position. This leaves it vulnerable to a loss of a key client
or general economic downturn that curtails the speeding.

4.3 OPPORTUNITIES

Tech Mahindra is very keen to enter still untapped markets like- Latin America and
Africa. They have already setup some delivery centre in Brazil and trying to setup
partnership with Bharti for entering Africa region.
Tech Mahindras integration with sister company Mahindra Satyam should put the
company in a prime position to leverage its telecom know-how across a range of vertical
industries. Telecoms relevance in a variety of vertical markets is creating a potential
boon of opportunity. So the combination of capabilities brought to bear under the
Mahindra umbrella should position the company to stay abreast of this wave of
opportunity as it continues to bring new solutions to market.
With increasing mobile working population and emergence of smartphones, business
applications are expected to take over the market for enterprise mobility. The global
enterprise mobility solutions market is expected to grow at a CAGR of 24.7% until the
year 2021.

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 There has been a tremendous growth in Data in the recent years and big Data has been
the primary contributor of the same. Big Data basically helps all organisations who want
to turn the huge amount of data into insightful information.

4.4 THREATS:

Revenue from BT slipped to 45%(In 2010) as compared to 54%(In 2009). Considering

BT as the biggest client, this revenue drop was not at all welcome by Tech Mahindra.
Global Economic slowdown hurts Tech Mahindra badly, as most of its client base
comes from Europe and North America.
Potential negative impact of Satyam related litigation.
Increasing presence of foreign IT player in respective domains

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 REFERENCES:

Websites:
www.slideshare.net
www.indialawoffices.com
www.ibef.org
http://accountlearning.blogspot.in
www.techmahindra.com

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