May 25, 2024
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“Tech Mahindra Announces Mohit Joshi as Next CEO and Managing Director to Address Execution Issues and Drive Growth”

Tech Mahindra Announces Next CEO and Managing Director

     Tech Mahindra, the Indian multinational provider of digital, consulting, and business process services, has announced that Mohit Joshi, former President of Infosys, will become its next CEO and Managing Director, effective from December 20, 2023. Joshi’s appointment comes after he resigned from Infosys on March 11, 2023, after 22 years with the company.

 

Tech Mahindra Announces Mohit Joshi as Next CEO and Managing Director to Address Execution Issues and Drive Growth"

 

The announcement has been made after a rigorous selection process during which the NRC evaluated a number of internal and external candidates. Joshi’s experience with digital transformation, new technologies, and large deals will complement Tech Mahindra’s strategies and continue to build on the strong growth momentum demonstrated by the company.

Joshi’s tenure at Infosys will come to an end in June and till then he will be on leave. This marks the second big exit for the company in recent months, after Ravi Kumar S, also a former Infosys President, exited the company and took over the role of Cognizant CEO in January.

As the new CEO, Joshi will need to address issues with execution, particularly in achieving a good balance of industry-matching revenue growth and respectable EBIT margin. Although the company has been making efforts to shift from a Telecom-heavy business to a more enterprise-oriented one, this transition has not been entirely smooth, per analysts.

In a note after the recent investor meeting, Nirmal Bang Institutional Equities said that the new CEO needs to fix execution, but there’s little that they disagree with on the company’s strategies. “The key challenge has been to deliver a good balance of industry-matching revenue growth and respectable EBIT margin, something TML has struggled with…But, with net new TCV in a higher band over the last many quarters, getting clients to move to execution and extraction of higher margins will be key tasks for the new CEO,” the note read.

The appointment of Joshi as the CEO and Managing Director comes as current CEO CP Gurnani’s term ends on December 19. In a statement, Tech Mahindra said Joshi will join “well before the date” of his appointment as CEO and MD to allow for sufficient transition time. During the recent investor meeting, Gurnani said that there will be a reasonable transition period between his moving on and the new CEO taking over and that he will guide, along with the rest of the leadership, during the transition.

Tech Mahindra has been making efforts to shift from a Telecom-heavy business to a more enterprise-oriented one. However, this transition has not been entirely smooth, per analysts. The company needs to fix execution at a time when it hasn’t been able to deliver industry-leading revenue growth rates and hasn’t been able to shore up its profit margins.

 

 

Joshi’s experience in digital transformation, new technologies, and large deals is expected to complement Tech Mahindra’s strategies and continue to build on the strong growth momentum demonstrated by the company.

 Tech Mahindra NRC Chairperson TN Manoharan said in a statement, “Mohit’s appointment is the successful culmination of a rigorous selection process during which the NRC evaluated a number of internal and external candidates. Mohit’s experience with digital transformation, new technologies, and large deals will complement Tech Mahindra’s strategies and continue to build on the strong growth momentum demonstrated by the company.”

 Tech Mahindra’s move to appoint Joshi as the CEO and Managing Director is seen as a strategic move to address issues with execution, particularly in achieving a good balance of industry-matching revenue growth and respectable EBIT margin. This is a key challenge that the company has been struggling with, and Joshi’s experience and expertise are expected to help Tech Mahindra overcome this challenge and achieve its strategic goals.

 

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