Tech Mahindra - Consolidated Q1 FY2014 Results - First Cut - Microsec

Tech Mahindra Ltd (Tech Mahindra) announced its consolidated Q1 FY2014 results on 12 August 2013. Both, the company's top line and bottom line came above Bloomberg consensus estimates.

While Tech Mahindra's revenues increased 8.9% q-o-q to Rs. 4,103.2 Crores, its bottom line expanded 7.6% sequentially to Rs. 686.3 Crores in Q1 FY2014. However, excluding the reversal of provision for impairment of losses in subsidiaries during Q4 FY2013, the profits would have jumped 36.2%, sequentially. The growth in Tech Mahindra's top line was fueled by a strong 3.7% increase in $ terms revenues and depreciation of local currency versus the greenback. The increase in revenues also trickled down to the company's profitability and enabled a 59 basis points sequential improvement in its EBIDTA Margins. The Q1 FY2014 numbers, are the first set of numbers reported by Tech Mahindra, post Satyam's merger. Although the company reported healthy Q1 FY2014 numbers, it underperformed its larger peers Infosys, TCS and HCL Tech during the quarter. However, considering its consistent performance and resultant diversification from the merger, Tech Mahindra remains one of our preferred pick in the sector after TCS and HCL Tech.

Source : Equity Bulls

Keywords