Weak execution on all fronts – orderbook, revenue growth and margins – warrants derating; reiterate SELL
TechM reported a weak set of numbers on all fronts. Revenue at USD 1,061mn was down 4% QoQ (I-Sec: -2.3%, consensus: -1.2%) due to sharp decline of 9.4% QoQ USD in communications (38% of revenue) and 3.2% QoQ USD decline in BFS (16.1% of revenue).