View on Tech Mahindra Q1FY22 Result Update First cut by Mr. Piyush Pandey, YES Securities
Below are views on Tech Mahindra Q1FY22 Result Update First cut by Mr. Piyush Pandey, Lead Analyst – Institutional Equities, YES SECURITIES.
Tech Mahindra Q1FY22 Result: In-line performance- Spike in attrition a concern)
Revenue was broadly in line at $1,384 mn( up 4.1% QoQ )
Growth was led by strong performance in enterprise segment that grew 4.7% in USD terms; whereas CME( Communication, Media and Entertainment) reported modest growth of 3.2% QoQ in USD terms.
In term of geographical break up, growth was supported by strong performance in the Americas (up 6.8% QoQ)and Europe( up 6.6% QoQ), while Rest of World showed degrowth of 2.7% QoQ in USD terms.
EBITDA margin declined 160 bps QoQ to 18.4% as per expectation led by wage hike in the quarter
Offshore revenue mix grew 100 bps QoQ to 38% as per industry trend.
New deal wins remained strong- at $815 mn vs $1,043mn in Q4FY21 and $290 mn in Q1FY21.
Number of active clients grew by 51 QoQ.
LTM Attrition has jumped 400 bps QoQ to 17% in the quarter ( area of concern). Utilisation increased by 100 bps QoQ to 88%.
Inline performance, We currently have ADD rating on the stock.
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