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MBT eyes European market foray

BS Corporate Bureau in Mumbai

Mahindra British Telecom, the joint venture between the Mahindra group and British Telecom, is to foray into the European markets of France, Spain and Italy on the back of its already existing operations in the UK, Benelux and Scandinavia.

The company has already put a senior management team in place headed by a new executive vice-president and head of European business, Jens Denecke to spearhead the company's thrust into these markets.

According to John Helleur, chief executive officer, MBT, "Despite the upheaval that the global telecom industry may be facing, MBT is increasingly confident of its telecom positioning and intends to become one of the leading telecom software services and solution providers globally."

Shantanu Rudra, chief financial officer , MBT, added, " The situation actually is an opportunity for niche players like us since telecom players are increasingly looking at outsourcing a greater part of their operations."

The company is also expanding its operations in the US and has scaled up its sales and marketing team in this region.

On the restructuring that the company was going through, Helleur said the phased internal restructuring was complete and it was recruiting between 50 and 80 new professionals every month over the past six months.

The company has also decreased its exposure to Worldcom, which contributed around $2.5 million ( Rs 12.5 crore) revenues in the previous financial year out of the company's $ 110 million approx. (Rs 527 crore) total revenues.

Revenues from Worldcom in the current financial year have been just around $ 5,00,000 in the current fiscal, he added.

For the quarter ended September 30, MBT posted a 11.8 per cent rise in total income at Rs 159.79 crore (Rs 1.60 billion) against a total income of Rs 142.9 crore (Rs 1.43 billion) in the corresponding of the previous year.

Profit after tax was 24 per cent higher at Rs 45.49 crore (Rs 455 million) compared with a net profit of Rs 36.7 crore (Rs 367 million) in the same period last year.

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