Tech MCFO Says Recession Intensifies But Impact Will Be Temporary, CFO News, ETCFO | Tech US News

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    Rohit Anand, CFO of Tech Mahindra
Rohit Anand, CFO of Tech Mahindra

CFO of Tech Mahindra Rohit Anand Expressed his views on how they are coping with the global recession and uncertain macro environment. The finance leader believes that the recession is likely to be a temporary phenomenon, and may not have long-term effects on the IT outsourcing industry. Below are the edited excerpts.

Q: What is your take on the global recession?

Rohit Anand: The global economic situation looks a bit tougher than a quarter ago. If you look at Europe, the war is going on and because of this the problem of energy has intensified. Plant shutdowns are a potential risk as we move into the next few months. Therefore, recessions have a different impact on Europe than in the US where inflation is more broad-based and not dependent on rising energy prices. In addition, America has one of the lowest unemployment rates. So, we are still a few quarters away from potentially serious economic implications compared to Europe and the UK.

Q: How is TechM dealing with the recession?

Rohit Anand: We are closely monitoring things in terms of how our customers react for the US, UK, and Europe respectively. So far, our pipeline is still strong, and the pace of deal turnover looks positive. Also, Tech Mahindra is looking at scenario planning and ensuring that it has done enough to handle the potential scenario of a harsh environment. But if a difficult phase also occurs, its effect is more temporary. Structurally, businesses want more outsourcing, and that’s where we come in and add value to them.

Q: What will you be most focused on as the global recession deepens?

Rohit Anand: Focus will continue to drive short-term operating metrics as has been the case in the Q2 quarter. This will be on margins, pricing measures, and internal productivity measures. This path will continue as it is. Also, structurally, the plan is to ensure a more favorable business mix for the US market, which helps us from a margin perspective. Another priority will also be to continue looking at more value added and margin accretive lines in the digital business (digital business contributes 50% of revenue for TechM). In addition, the focus will be on divesting businesses that are not strategic and are not adding value to margins.

Q: What is your 2023 New Year’s resolution on the personal front?

Rohit Anand: I am spending a lot of time on health, so I will continue to run it. I look forward to getting healthier. I do not take any oil, dairy, milk and non-vegetarian etc and eat raw and fresh food more. I haven’t spent much time in the kitchen due to work, but I would like to spend more time in the kitchen and cook as much as possible.

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