Dubai: Indian multinational tech company Tech Mahindra is in joint venture discussions to expand its reach in the Middle East, a top executive at the company has said.
“We are going through partners beyond our focus countries,” said GB Kumar, vice president and geo head for Middle East, Africa and Turkey, in a phone interview.
Tech Mahindra, which has reported a 38.6 per cent rise in after-tax profit of $498 million for the financial year ending March 31 2014, is looking at partnerships in Algeria and Iraq.
The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased 22.1 per cent to $687 million and its revenue rose 17.7 per cent to $3.098 billion.
The financial results include last year’s merger with Satyam Computer Services, which created India’s fifth largest software services company.
Company fourth quarter after tax profit was $101 million, while its Ebitda climbed 22.8 per cent to $176 million. Fourth quarter revenue rose to $825 million, up 18.2 per cent.
Kumar said Arabian Gulf government expenditure drives much of the company’s regional operations, whereas it is the private sector in other markets. In the region, Tech Mahindra is heavily focused on the oil and gas sector as well as banking and financial services.
Kumar is buoyant on the Turkish economy despite a shaky past 12 months with country-wide protests, allegations of government corruption and nation-wide local elections rocking the market.
But unlike the Gulf, government spending does not make up the bulk of Tech Mahindra’s operations in Turkey.
“Our focus has been in the manufacturing fast moving consumer goods (FMCG) sector as well as energy utilities,” he said.
“We have seen very good momentum in that market,” he added, “The private sector appears to be reasonably vibrant. I’m not seeing any material change.”
