13 July, 2014 21:49 IST
TechM, Satyam combined less likely to surprise on revenues: Nomura
Source: IRIS Exclusive (07-FEB-13)
Comments  |  Post Comment

Nomura Financial Advisory and Securities has maintained 'Neutral' on Tech Mahindra (TechM) with price target of Rs 970 as against current market price of Rs 980 in its report dated Feb. 07, 2013.

Tech Mahindra 3QFY13 results were ahead of expectation on margins and PAT. Revenues were in line with its expectations with flat q-q growth on an organic basis in TechM, mirroring the trend at Mahindra Satyam. Margin surprise of 80bps q-q was led by headcount curtailment of 3,000 people (6% of overall headcount) and 60bp benefit to margins from higher-than-normal margins at Comviva due to seasonality. PAT was ahead of expectation driven by the margin beat and higher other income.

"Post the results at TechM and Satyam, we believe the combined entity is less likely to surprise on revenues as BT declines continue, headcount curtailments do not provide comfort and deal flow in the non BT segment is largely built in. Overall, we do not see a material change to our earnings estimates (INR97/103 over FY14/15F on proforma TechM + Satyam combined entity),'' said Nomura Financial Advisory and Securities.

Click here to view full report

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Tech Mahindra Limited   (Q,N,C,F)*

Continue to like Infosys on inexpensive valuations: Emkay - 11-Jul-2014 17:52
Infosys Q1 margin beat but revenue still subpar; maintain 'Accumulate': MSFL - 11-Jul-2014 17:35
ICICIdirect continues to maintain positive stance on Bata India - 11-Jul-2014 17:07
Surging iron ore prices in India is matter of grave concern: Seshagiri Rao - 11-Jul-2014 15:13
Shiva Cement gets BIS license for PPC - 11-Jul-2014 14:15
Infosys Q1 beats forecast; recommends 'Buy': Angel Broking - 11-Jul-2014 11:35
Infosys Q1 beats estimate; profit climbs 21.6% - 11-Jul-2014 09:34
No custom duty on LCD, LED is good for industry: Tarun Katial, Reliance Broadcast Network - 10-Jul-2014 20:16
Budget offers no incentives for pharma industry: Ramesh Swaminathan, Lupin - 10-Jul-2014 20:09
Increase in rate of royalties for minerals disappointing: TV Narendran, Tata Steel - 10-Jul-2014 20:02
FM fails to notice NBFC sector in this Budget: Hemant Kanoria, Srei Infra Fin - 10-Jul-2014 19:52
* Q - Quote , N - News , C - Chart , F - Financials
Comments Post comment 
 Post Comment
Name Email
Security Code type   fzzskq into this box
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Forums  |   E-mail  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer