BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Tech Mahindra Ltd. reported constant currency growth of 2.9% QoQ (our estimate: 2.6%), which was led by 3.1% QoQ growth for communications, media and entertainment, while enterprise grew 2.8% QoQ.
However, revenues in reported terms (Indian rupee) were below estimate due to weaker Indian rupee realizations. Announced dividend per share of Rs 18.
Operating profit margin stood at 11.4%, (our estimate: 11.4%), up 32 basis points QoQ, net improvement from better utilisation, exit of lower margin biz., selling, general and administrative savings and better pricing, negated by wage hike, inflation and forex headwind.
Commentary turns cautious for European market wherein it has already started experiencing delayed decision making.
Accounting for Q2 results, we note Tech Mahindra's change in stance from positive to cautious, and expect growth rates to be challenged in light of volatile macro environment.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
