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Tech Mahindra to focus on 4 trends to deliver industry-leading growth

09:49 AM Nov 13, 2021 | Agencies

Chennai: Tech Mahindra Ltd will focus on four strategic trends emerging in the technology space to deliver industry-leading growth in the near term. The company's management highlighted the growth outlook on Thursday at an Investor Day 2021 event for analysts and stakeholders. The Pune-based information technology player will focus on four bets--connectivity (preferred partner on 5G and digital transformation), customer experience, cloud (deep vertical cloud solutions), and engineering (robust capability in product engineering)--to accelerate its overall growth going ahead, according to a Sharekhan Ltd report quoting the senior management.

Though banking and financial services, and manufacturing verticals will achieve a $1-bln revenue run-rate in the ongoing financial year, hi-tech (currently at $500-mln annual revenue) and healthcare (currently $400 mln annual revenue) verticals are expected to touch $1 bln annual revenue over the next two years, the brokerage said quoting the management.

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The technology company is focusing on 5G-related business such as network, devices, and software, among others, where it has a strong presence, as the management expects 5G to contribute $3.7 trln to the global economy by 2030 of which the share of 5G-related business would be $712 bln. The company also said it will return at least 60% of yearly free cash flows generated (after mergers and acquisition-related spending) back to shareholders as dividend or share buyback.

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Shares of the company ended 4.1% higher at 1,585 rupees per share on the National Stock Exchange.

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