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Below are Quote on Tech Mahindra Q4FY21 Result by Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

Tech Mahindra reported relatively muted revenue growth of 1.6% qoq to USD 1,330mn. In rupee terms revenue grew by 0.9% qoq to ₹9,729.9 crore. Gross profit for the quarter was up 3.3% qoq to ₹3280.3 crore while gross margins expanded by ~79bps qoq to 33.7%. EBITDA for the quarter registered a growth of 2.8% qoq to ₹1,948 crore while margins expanded by ~37bps qoq to 20.0%. Net profit for the quarter was down by 17.4% qoq to ₹1,081 crore due to a sharp decline in other income for the quarter. Tech Mahindra reported strong deal wins during the quarter with net new deal wins of USD 1.04bn. While the topline growth was lower as compared to other Tire I IT companies, Tech Mahindra has done well in terms of new deal wins during the quarter. However given the company’s over dependence on the Telecom sector we maintain our preference for Infosys and HCL tech in the large cap space.

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