NOIDA: Telecom-focused IT company Tech Mahindra on Wednesday reported a 3% increase in its revenues for the year ended March 31, to $1.15 billion, thus beating street expectations which were predicting a dip in its revenues due to the flailing telecom sector globally. 

The company's board elevated Mahindra Satyam CEO CP Gurnani, as the new Managing Director of Tech Mahindra, which will be subject to government's approvals. The company suffered a 2% drop in its revenues from the December quarter due to the shutdown of Indian operations of its two telecom clients Etisalat DB and STel, as their 2G licences were cancelled by the Supreme Court. 

Tech Mahindra invoked the bank guarantee of Rs 200 crore of Etisalat DB, as their contract was pre-maturely terminated. Tech Mahindra's net profit increased 63% to $230 million, backed by a part of profits from Mahindra Satyam, which it acquired three years ago. 

The company expressed its concern on the telecom sector, which contributes 98% to its revenues.

The company counts Alcatel Lucent, British Telecom, Motorola as clients. "Because of the global distress, most telcos are trying to reduce their IT spends," said Vineet Nayyar, current Vice Chairman, MD and CEO of Tech Mahindra.