Motilal Oswal: Tech Mahindra Q2 Review - Good Execution; Further Rerating Requires Revenue Pickup  
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Motilal Oswal: Tech Mahindra Q2 Review - Good Execution; Further Rerating Requires Revenue Pickup  

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Motilal Oswal Report

Tech Mahindra Ltd.’s revenue growth of 2.9% QoQ constant currency terms was ahead of our expectations (1.5% QoQ).

Growth was driven by the enterprise business (4.3% QoQ) while communications remained largely flat (0.8% QoQ) given the overhang in network services.

BPO (31.3% QoQ), which accounts for approximately 10% of the business drove more than half of the growth.

Margin expansion of 410 basis point sequentially was a surprise. This was led by improvement in both supply/demand and operational efficiencies coming into play.

Click on the attachment to read the full report:

Motilal Oswal Tech Mahindra Q2FY21 Result Update.pdf

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