Tech Mahindra Q4 Review - Communications To Remain A Drag On FY22E Performance: Motilal Oswal
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.
Motilal Oswal Report
Tech Mahindra Ltd.’s Q4 FY21 U.S. dollar revenue growth of 0.7% QoQ constant currency was below our already modest expectations.
Communications was flat during Q4 FY21, while the enterprise business posted modest growth (1.1% QoQ CC).
New deal wins of $1.04 billion were the highest in five quarters and split equally between communications (driven by the Telefonica deal win) and enterprise.
Ebit margin increased by 60 basis point to a multi-year high of 16.5%, unlike our expectation of a 20bp QoQ dip.
An increase in margin was led by further rationalizing of headcount (847 employee reduction) while maintaining peak utilization levels (87%).
Click on the attachment to read the full report:
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.