Tech Mahindra Q4 Review – Disappointing Performance; Unchanged Outlook: ICICI Securities

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Tech Mahindra Ltd.’s organic revenue remained largely stagnant (QoQ), behind our/consensus estimates.

Even the tepid growth was driven by unreliable geographies like rest of world (up 6.2% QoQ, U.S. dollar), while key markets like U.S. (down 1.3% QoQ, U.S. dollar) posted a decline.

Unburdened by wage hikes (contrary to industry), also aided by further ~0.9% QoQ reduction in delivery headcount and lower data and analytics, the company was able to report 60 basis points Ebit margin expansion.

Net new deal wins ($1,043 million) was strong driven by large deals like Telefonica.

However, their translation into future growth is the key monitorable given the limited causality in the past.

Click on the attachment to read the full report:

ICICI Securities Tech Mahindra Q4FY21 Result Update.pdf


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