In our view, there is nothing enthusing about Tech Mahindra's 1QFY17 financial report. From a revenue perspective, its revenue from its key vertical i.e. Telecom declined 2.5% qoq in USD terms owing to weak seasonality. Manufacturing clocked a healthy 6.8% qoq growth, though aided by Pininfarina consolidation (one month contribution of US$9mn), while BFSI (+7.5% qoq) and Retail, Transport & Logistics (+5.8% qoq) also clocked encouraging performances. On yoy basis, BFSI, Manufacturing & Others three verticals which account for ~37% of Tech Mahindra's total revenue recorded double digit growth of 17.8%, 10.4% & 20.6%, respectively in 1QFY17. Thus, more...