27 July 2020 TechMs resilience in revenue (-5% QoQ, CC), especially in Enterprise, is encouraging given the current context. Decline in Communications (8.2% QoQ) was on expected lines given the overhang in Network Services. The margin surprise was led by better-than-expected control on SG&A; costs. Understandably, net new deal wins (USD290m) were weaker than the usual run-rate. Despite the elongated decision-making cycles, the company hinted at improving deal pipeline. Revenue and margins are expected to improve from hereon. Ramp-up in recently won mega deals was largely on track, a key positive. We upgrade our EPS estimates over FY2122E by 17% as we revisit our growth and margin trajectory in light of the surprise in 1QFY21 and optimistic commentary. TechM reported revenue (USD) / EBIT / PAT growth of -3%/-8%/1% YoY v/s our estimate of -5%/-18%/-23% YoY. Revenue declined 6.3% QoQ (CC), lower than the consensus expectation of 7.