Kyndryl’s India arm retained billion-dollar placard even as global revenue skid

In 2021, technology giant IBM hived off its managed infrastructure services business. Temporarily called NewCo, this spun-off entity was renamed as Kyndryl as a public company in the US employing about 90,000 people globally. IBM disposed of its 19.9% retained equity stake in Kyndryl common stock in the year following the spin-off.
 
In the first full year as an independent company, Kyndryl saw a 7% decline in global revenues to $17 billion, largely due to negative impact from currency. While its home market revenue was unchanged, business from Japan and what it calls principal markets declined by nearly eighth, due to currency movements. Although the net loss declined, it remained in red.
 
The company’s India business in contrast has fared much better.
 

 
The tech company that houses a third of its global employees in India saw double digit rise in local currency that would translate into a flat business in dollar terms, it is estimated, after accounting for the 10% slide in value of rupee in the same period.
 
As per data compiled by VCCEdge, in the year ended March 2023, Kyndryl India recorded revenues of ₹8,504 crore, as against previous year’s ₹7,714 crore. It remained a little over $1 billion in both the years.
 
However, Kyndryl India posted a nominal profit, after suffering a loss in the previous year. Kyndryl has not responded to TechCircle's queries.

Kyndryl has alliances with all three major cloud providers — AWS, Microsoft, and Google Cloud. As per an October 2023 interview with The Times of India, Kyndryl’s CEO Martin Schroeter said that in FY23, the company booked $1.2 billion worth of the deals with cloud hyperscalers. Schroeter also credited the Indian teams for many of these signings.
 
Last month, Kyndryl bagged an IT modernisation deal from Canara Bank — one of India’s largest public sector banks — to optimise the bank's business services and operations and modernise its IT infrastructure. Kyndryl will enhance the bank's end-to-end IT operations and streamline service delivery across core banking, IT infrastructure, applications, and network operation, the press release stated.

IBM, like it’s hived off IMS arm, registered a growth in India for fiscal ended March 2023, after five consecutive years of declining business. The firm has clocked net sales of ₹27,854.6 crore, up 22% over the previous year. This growth came despite IBM losing an important business unit when it spun off its managed infrastructure services arm into a separate company as Kyndryl.