01-01-1970 12:00 AM | Source: PR Agency
View on Tech Mahindra Q1FY22 Result Update First cut by Mr. Piyush Pandey, YES Securities
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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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