Tech Mahindra Q1 Results Review - Strong Start To A Turnaround: Prabhudas Lilladher

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Tech Mahindra Ltd. reported revenue of $1.56 billion, up 0.7% QoQ in constant currency and reported terms, above our and consensus estimates of 0.3% and 0.5% QoQ CC growth. The growth was aided by strong performance in retail, healthcare and manufacturing segment, the pace of decline in communication decelerated further, down 2% QoQ/down 10% YoY. The strong margin expansion of 110 bps QoQ was a positive surprise despite the headwinds of seasonality in Comviva business (-50 bps QoQ) and higher visa expenses (-30 bps QoQ). The total contract value win of $534 million, up 6.8% QoQ was the second successive quarter of $500 million plus total contract value win..The progress on cost rationalisation was remarkable in Q1 despite having growth challenges and margin headwinds. Baring communications, the growth for enterprise business (2.1% QoQ) was broad-based across verticals. The strategic plans laid out in Q4 have witnessed good progress in term of integrating portfolio business and mining strategic accounts, evident through elevated deal TCV and broad-based recovery, even pruning the tail accounts have largely stabilized. With new leadership team and delivery partners in place, it has started chasing multi-tower deal of $25 million plus. However, the management indicated that it would priorities margins over growth, it would filter out deals having negative cash outflows and low margins..Click on the attachment to read the full report:.Tech Mahindra Q1 Results Review - New Laid Strategies Showing Its Way To Growth: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tech Mahindra Q1 Results Review - Strong Start To A Turnaround: Prabhudas Lilladher

Given the demand within communications remained weak the brokerage believes the company’s laid out strategy to drive balanced portfolio mix with reduced dependency on communications is a positive.

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Tech Mahindra Q1 Results Review - Strong Start To A Turnaround: Prabhudas Lilladher

Given the demand within communications remained weak the brokerage believes the company’s laid out strategy to drive balanced portfolio mix with reduced dependency on communications is a positive.

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