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TechM climbs 5% on bagging over $1 billion worth contract

Tech Mahindra will see an impact on margins in the next two quarters.

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Last Updated: Sep 06, 2019, 03.49 PM IST|Original: Sep 06, 2019, 10.33 AM IST
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Tech Mahindra will take ownership of many of the applications which support AT&T’s network and shared systems to execute the contract over six and a half years.
NEW DELHI: Shares of Tech Mahindra climbed 5 per cent in Friday’s trade after the IT major bagged $1 billion contract from its largest customer AT&T. The new deal is in addition to the existing business from AT&T.

Tech Mahindra will see an impact on margins in the next two quarters due to the transition of work, ET said.

Tech Mahindra will take ownership of many of the applications which support AT&T’s network and shared systems to execute the contract over six and a half years.

In 2013, the company had signed a five-year contract with British telecom provider BT, which was estimated at more than $1billion. AT&T is looking to modernise its IT network, shared systems and shift to the Cloud.

“It is among the biggest in the last 5-6 years, and comparable to the biggest deals in our history,” Tech Mahindra chief financial officer Manoj Bhat told ET. He, however, declined to specify the deal value.

The shares of the company closed 3.77 per cent higher at Rs 721.55 on BSE.
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