Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 9

Warning: include_once(/newsCentre/captcha.php): failed to open stream: No such file or directory in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 25

Warning: include_once(): Failed opening '/newsCentre/captcha.php' for inclusion (include_path='.:/usr/share/php') in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 25

Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 49

Notice: Undefined variable: storySecID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 57

Warning: count(): Parameter must be an array or an object that implements Countable in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 223

Warning: include_once(./functions/secwiseNewsFunctions.php): failed to open stream: No such file or directory in /me/beta.myiris.com/htdocs/newsCentre/bodyTop.php on line 5

Warning: include_once(): Failed opening './functions/secwiseNewsFunctions.php' for inclusion (include_path='.:/usr/share/php') in /me/beta.myiris.com/htdocs/newsCentre/bodyTop.php on line 5
Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
12 July, 2025 19:56 IST
IDBI Capital maintains Buy on Tech Mahindra
Source: IRIS | 27 Apr, 2021, 04.54PM
Rating: NAN / 5 stars.
Comments  |  Post Comment

Notice: Undefined variable: fileR in /me/beta.myiris.com/htdocs/newsCentre/bin/addLinksNew.php on line 17

Notice: Undefined variable: fileR in /me/beta.myiris.com/htdocs/newsCentre/bin/addLinksNew.php on line 142

 Tech Mahindra (TECHM) Q4FY21 revenue grew by 0.7% QoQ in CC (+1.6% in USD) versus our forecast of +1.7% QoQ. Enterprise segment (60.4% of revenue) has grown by 1.8% QoQ in USD with BFSI (16.5% of total revenue) outperforming with 4.9% QoQ growth and Retail, transport & logistics (7.5%) underperforming with QoQ decline of 3.2%, said IDBI Capital in its report.

Communications vertical (39.6%) has grown by 1.4% QoQ in USD. EBIT margin improved by ~55bps QoQ to 16.5%, at a 25-quarter high. The QoQ improvement was driven by operational efficiencies including increase in offshoring & utilization and lower D&A partly offset by increase in SG&A cost and variable payouts. Headcount continues to see QoQ decline (-0.7% to 121k) and attrition has inched up a bit to 13.3% versus. 12.4% in Q3.

Commenting on the result review, IDBI Capital said, "While TECHM's Q4Y21 revenue was slightly lower than our forecast, EBIT margin was a beat. Revenue grew by 0.7% QoQ in CC (+1.6% QoQ in USD terms). EBIT margin improved by ~55bps QoQ to 16.5%, a 25-quarter high. However, recurring EPS of Rs13, -13.7%/+10.5% QoQ/YoY was a miss, impacted by FX loss and higher ETR.

In Q4FY21, TECHM has secured new deals with TCV of USD 1,043 million and is confident of similar run-rate in Q1FY22. For FY22, TECHM has guided for a double-digit revenue growth and EBIT margin of 15%+, higher than our expectation and versus 14.2% in FY21.

While we factor higher EBIT margin for FY22/23, it gets largely offset by higher ETR. We fine-tune our forecast to revenue/EPS CAGR of 9.5%/13.3% over FY21-23. We maintain BUY with new TP of Rs1,118 (vs. Rs1,108) based on PER of 17x FY23E."  

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.



 Post Comment
Notice: Undefined index: dir in /me/beta.myiris.com/htdocs/newsCentre/comments.php on line 162
>
Name Email
Comment
Security Code type   
Notice: Undefined variable: captchacode in /me/beta.myiris.com/htdocs/newsCentre/comments.php on line 183
into this box
Related Articles

Notice: Constant DOC_ROOT_FOR_HTML_FILES already defined in /me/beta.myiris.com/htdocs/newsCentre/rightSideTabs.php on line 1

Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 470

Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 470
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer


Warning: fopen(/me/beta.myiris.com/htdocs/newsCentre/news_web_count.txt): failed to open stream: Permission denied in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 566

Warning: fwrite() expects parameter 1 to be resource, boolean given in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 567

Warning: fclose() expects parameter 1 to be resource, boolean given in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 568

Notice: Undefined index: key in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 571