Sell

Q4 revenue growth subdued at 1% YoY as volumes stay flat YoY, guarding realisations a challenge

Coforge posted weak Q4 results – revenue and margin both missed estimates. Deal intake grew >2x in Q4, QoQ and YoY, on the back of a large renewal deal (USD400mn TCV; 6Y tenure).

At 92.8% for Q4FY24 (and 96.7% for FY24), the combined ratio (CoR) of Star
Health was slightly worse than our estimates.

Reported rental revenue up 7.7% YoY/2.2% QoQ to INR 45.8bn in Q4FY24.

Yes Bank (YES) has reported in-line Q4FY24 PAT of INR 4.5bn, with RoA rising to 0.5%. Loan growth was healthy at 5% QoQ but deposits growth was strong at 10% QoQ. Stock of net NPA and net SR improved sharply to 1.1% vs 1.7% QoQ and 2.4% YoY.

Quarterly Update Q4FY24

MSIL has reported stronger-than-expected underlying margins (12.9%), led by
operating leverage and lower sales promotion expenses (discounts).

Mphasis’ revenue growth, at 2.1% QoQ CC, was largely in line our estimate of 1.9%. An uptick in BFS with the regional banking crisis showing signs of easing helped lift growth (Technology, Media and Telecom), with an uptick of 4.4%, also contributed to growth. However, TCV was at USD 177mn (down 26.6% QoQ).

HCLT reported revenue growth and EBIT margin in line with our estimates. IT and business services grew 4% QoQ CC and Engineering R&D was down 1.6%. Software business was down 18.5% QoQ CC on seasonal weakness.