Views on Tech Mahindra Ltd 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - IT, Angel Broking) on Tech Mahindra Ltd 1QFY2017 Results:

"For 1QFY2017, the company posted results lower than expected. On sales the company posted sales of INR 6,921cr V/s INR 6,880cr expected and V/s INR 6,884cr in 4QFY2016, a QoQ de-growth of 0.5%. In US$ terms, it came in at US$ 1,032mn V/s US$1,027mn expected and V/s US$1,023mn, a QoQ growth of 0.9%.

The top line growth, during the quarter was driven by USA (which was 49.0% of sales V/s 46.8% in 4QFY2016), while ROW was a drag, constituting around 22.8% V/s 24.7% in 4QFY2016. In terms of Industries, Manufacturing and BFSI Industries were the key drivers of the top-line growth of the company. Manufacturing, constituted around 18.1% of sales V/s 17.1% in 4QFY2016, while BFSI contributed around 11.3% of sales V/s 10.6% of sales in 4QFY2016. In terms of client additions, the company added 11 clients out of whom 2 were in US$20mn+ and 1 was in US$10mn+.

Shares of TECH MAHINDRA LTD. was last trading in BSE at Rs.495.25 as compared to the previous close of Rs. 499.6. The total number of shares traded during the day was 202118 in over 4725 trades.

The stock hit an intraday high of Rs. 507.45 and intraday low of 493.95. The net turnover during the day was Rs. 101064066.

Source : Equity Bulls

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