Views on Tech Mahindra Ltd 4QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP- Research IT, Angel Broking) on Tech Mahindra Ltd 4QFY2016 Results:

Tech Mahindra Ltd (CMP: INR 479 / TP: INR 530 / Upside: 10.6%)

"For 4QFY2016 Tech Mahindra, posted sales of INR 6884cr V/s INR 6701cr in 3QFY2016, a QoQ growth of 2.7%. On US$ terms, the company posted sales of US$ 1023mn V/s expectations of US$1021mn, a QoQ growth of 0.8%. In terms of geography, the ROW drove the growth, with ROW (24.7% of sales V/s 23.2% of sales in 3QFY2016). Europe was 28.5% of sales V/s 28.9% in 3QFY2016, while USA was 46.8% of sales V/s 47.8% of sales in 3QFY2016. In terms of Industry, the growth was driven by BFSI (which was 10.6% of sales V/s 9.8% of sales in 3QFY2016). On operating front, the EBDITA came in at 16.9% V/s 16.6% in 3QFY2016, while EBIT came in at 13.7% V/s 14.4% in 3QFY2016. On the operational front the attrition levels, came in at 21% V/s 20% in 3QFY2016, while utilization was flat at 77%. Amongst the client additions, the company added 6 clients. The net profit came in at INR 897cr V/s INR 759cr in 3QFY2016, a QoQ growth of 18.1%, this was mainly driven by the other income, which came in at INR 166cr V/s INR 64cr in 3QFY2016. We maintain ACCUMULATE rating on the stock."

Shares of TECH MAHINDRA LTD. was last trading in BSE at Rs.546.25 as compared to the previous close of Rs. 539.65. The total number of shares traded during the day was 733613 in over 7151 trades.

The stock hit an intraday high of Rs. 552.2 and intraday low of 536.3. The net turnover during the day was Rs. 399514506.

Source : Equity Bulls

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