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Tech Mahindra Ltd reported constant currency growth of 2.9% QoQ (our estimate: 2.6%), led by 3.1% QoQ growth for Communications, Media & Entertainment, while Enterprise grew 2.8% QoQ. added
However, revenue in reported terms (in Indian Rupees) was lower than estimated due to weak Indian Rupee receipts. 18 per share dividend declared.
Operating profit margin 11.4%, (our estimate: 11.4%), 32 basis points QoQ, net improvement from better utilization, exiting low-margin businesses, selling, general and administrative savings and better pricing, from wage growth Denial, Inflation and Forex Headwinds.
Commentary turns cautious for the European market where it has begun to experience delays in decision-making.
Looking ahead to Q2 results, we note a shift in Tech Mahindra’s stance from positive to cautious, and expect challenging growth rates in light of the volatile macro environment.
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