Tech Mahindra Q1 Review – Initiated Rally Phase: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Tech Mahindra Ltd. reported strong growth of 4.1% QoQ U.S. dollar much above our and street estimates (our estimate: 2.2%, consensus: 2.4%).

Growth was led by enterprise segment and communications in seasonally weak quarter grew up 3.2% QoQ U.S. dollar, registering highest ever Q1 growth in last five years.

Ebit margins came at 15.2% above our and consensus estimates (our: 14%, consensus:14.4%).

Management is confident on maintaining Ebit margins above 15% despite headwinds from supply side crunch – higher attrition (17%, up 400 bps QoQ) coupled with all-time high utilisation (88% in Q1 FY22) due to margin levers such as-

  1. expand offshoring,

  2. general and administrative costs centralisation for portfolio companies

  3. operational efficiency and automation,

  4. pyramid optimisation and

  5. revenue growth leverage.

Click on the attachment to read the full report:

Prabhudas Lilladher Tech Mahindra Q1FY22 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
reporterwings Governmental News Finance News

Source link

Back to top button