We maintain our Buy rating on Tech Mahindra (TechM) with a revised PT of Rs. 910, given it is trading at a sharp discount to its large peers. Revenue growth in Q2 would be driven by strong recovery in BPO business,...

Initiate coverage on Tech Mahindra (Tech M) with Buy rating and price target of Rs. 850, given potential 5G opportunity and anticipated rise in margins. Our positive stance underpins company's comprehensive capabilities in telecom...

While valuation looks expensive in the short-term, we remain bullish on TechM's long-term outlook, with strong growth seen in enterprises segment and gradual recovery in communication vertical. We retain our BUY rating on the stock with a TP of Rs. 779 on 15x FY22E adj. EPS. Decent quarter despite challenging time Company recorded revenue growth of 5.2% YoY to Rs. 9,106cr (vs. Rs. 8,653cr in Q1FY20). The increase in revenue driven by growth in IT segment (91.9% of total revenue) 6.5% YoY to Rs. 8,367cr, which was partially offset by declined in BPO...

The company reported deal wins worth $300 million during the quarter under review, with $100 million worth of communication contracts and $190 million in enterprise space. Manufacturing was the worst hit vertical, with revenue from the segment declining 11%...

Tech Mahindra (TECHM) posted a 6.8% QoQ dollar revenue decline and 10bps EBITDA margin expansion, bettering our estimates for Q1FY21.

M on 14X multiple (margin volatility & lower margins than peers will restrict further re-rating of multiples) on Sep-22 EPS of Rs.51 to arrive at a changed target price of Rs. 716. Upgrade to Accumulate from Reduce. Tech M positively surprised with decent set of numbers with revenues & margins above our & street estimates. TM posted with -6.3% revenue (Ple: 6.6%, Cons: -8.3%) CC decline with core business (telecom) declined by 8.2% QoQ & Enterprise revenue declined by -5.1% QoQ. Tech M surprised on margin front beating our/cons estimates by 100bps to 10.1% & management also mentioned EBIT margins will improve from hereon. PAT came at INR9.72bn which is 22% higher than our estimates/cons led by margin beat &...

FY21 revenue growth trajectory hazy; margin picture bit clearer Tech Mahindra's (TML) 1QFY21 6.3% QoQ decline in revenue in CC terms (-6.7% in USD), was better than our estimate of -7.9%. 75% of the decline was because of demand and 25% because of supply side issues. Communication sector (40% of revenue, down 8.6% CC) led the decline while enterprise was down 5.4%. Enterprise likely benefited from further ramp of the Prudential deal. As expected there was ~100-150bps impact of inorganic revenue in the quarter. EBIT margin was 220bps better than estimate equally driven by better gross margin and better control of SGA expense. TCV at US$290mn (a third being communication) was disappointing as we had expected it...

Tech Mahindra reported better than expected results in Q1 FY21 in all the terms. Revenue for the period of Q1 FY21 stood at Rs. 9,106.3 cr decline by 4% QoQ and 6%QoQ in CC terms. Operating margin reported a marginal growth of 11bps and stood at 14.3% aided mainly by INR depreciation

We recommend a BUY on Tech Mahindra with a Target Price of Rs 710, an upside of ~7% from CMP of Rs. 664 and Stop Loss Rs 630.

Communication opportunities to fructify, drive growth in long run The current quarter revenues were impacted by challenges on network side customer deferring projects, Comviva seasonality, supply side challenges (especially in BPO), pricing pressure. Going forward, we expect TechM to see improved traction led by easing of supply side pressure, large deal ramp ups and growth in communication & enterprise side. We believe the company in the longer term could see improved spending on network operations, 5G, Cloud, AI, customer experience on communication side....

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.

Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra has recently. Company provides IT Services such as solution integration, application development and management, consulting, application management, infrastructure management, and revenue management services.Compay also offer Research and Development services. It provides technological solutions such as software development, testing, hardware development, network offering etc to leading telecom equipment manufacturers...

Q4FY20 consolidated revenue increased 6.7% YoY to Rs. 9,490cr, however was marginally down on QoQ basis (-1.7%). In USD terms, overall revenue declined 4.3% QoQ to USD 1,295mn (-3.3% QoQ in constant currency terms) despite continued growth in Digital revenues (+2.0% QoQ). On segment levels, BPO business revenue came in at Rs. 822cr (+4.8% YoY, pace of growth impacted by the COVID-19 pandemic), while IT business revenue grew 6.9% YoY to Rs. 8,668cr. EBITDA fell 31.0% YoY to Rs. 1,348cr (-13.8% QoQ), as margin contracted 420bps on YoY to 14.2% (-200bps QoQ)....

Tech Mahindra Ltd.s quarterly profit fell more than estimated as Covid-19 pandemic stalled economic activity and spending across the globe. Tech Mahindra for the quarter ended Mar 2020 reported a revenue (in US dollar terms) of USD 1294.6 million, a fall of 4.3% QoQ. But on constant currency terms the revenue de-growth was...

Tech Mahindra's (TML) 4QFY20 disappointed with 3.3% QoQ decline in revenue in CC terms (4.4% in USD), below our growth estimate of 1.3% (0.2% in USD). 40% of the decline has come from the BPS business (~9% of revenue, 15% decline QoQ in USD). EBIT margin at 10% was 240bps below our estimate and 220bps lower QoQ. At its analyst meet (Update)TML was guiding towards high single digit USD revenue growth in FY21 and mid-teen EBIT margin. Covid-19 has meant that FY21 would be a year of mid-single digit USD revenue decline and ~10% EBIT margin (thanks to a cushion of 300-450bps due to lower travel costs, lower salaries for mid-senior employees, lower real estate costs, cut in subcon expenses, etc offsetting price decline). Its 122% YoY growth in TCV...

TECHM's Q4FY20 result was a miss to our forecast operationally. Revenue decline of 3.3% QoQ in CC (-4.3% in US$) was a miss to our forecast. Further, EBIT margin decline was much steeper at 220bps QoQ to 10% vs. our forecast of -55bps. Adj. EPS was inline aided by higher other income and lower ETR. In Q4FY20, TECHM has secured large deals with TCV of US$513 mn (US$174 mn in...

In the near term (at least for the next two quarters), the company is expected to face multiple headwinds in terms of pricing pressure, ramp down in projects, lower growth in Comviva and impact on BPS business. Further, on the enterprise side, TechM is expected to see pressure on retail and manufacturing business. In addition, the enterprise side is exposed to more of discretionary spend (related to digital), which will also put pressure on revenue growth. However, we believe the company in the longer term could see improved spending on network operations, 5G, Cloud, AI and customer...

Tech Mahindra Ltd (TECHM) reported overall weak set of numbers in Q4 FY20. Its revenue stood at Rs. 9,492 crs up 7% YoY and declined by 2.11% QoQ. Operating profit also declined by 14% QoQ to Rs. 1,348crs and operating margin declined by 200 bps to 14.2% (vs) due to onetime debt provision.

Tech Mahindra (TECHM) posted a 4.3% QoQ dollar revenue decline and 200bps EBITDA margin contraction to round off a disappointing Q4FY20 performance.