Tech Mahindra Q3FY22 Preview: Revenue seen at Rs114,399 million, PAT at Rs15,188 million

1 Feb 2022 , 09:29 AM

Result date: 1st February, 2022

Recommendation: Buy

Target price: Rs2000

(Source: IIFL Research)

Tech Mahindra is likely to report revenue growth of 4.5% QoQ on a constant currency basis driven by ramp-up of large deal wins and seasonal uptick in the Retail/Communication segments.

Margins are expected to grow by 20bps QoQ due to INR depreciation.

Company could report PAT at Rs15,188 million with a growth of 13.5% QoQ.

Important management insights to watch out for:

·         Trajectory of deal wins, including color on 5G deal sizes and quantum

·         Outlook on recovery in the Manufacturing vertical and traction in BFSI

·         Supply-side comments related to attrition trends, sub-contracting costs and employee additions

	December 2021 estimates	QoQ change	YoY change
Revenue (US$ mn)	1,524	3.5%	16.5%
Revenue (Rs. mn)	114,399	5.1%	18.6%
EBIT (Rs. mn)	17,584	6.4%	14.4%
EBIT margin	15.4%	20 bps	(60) bps
Profit After Tax (Rs. mn)	15,188	13.5%	16.0%
EPS (Rs.)	17.2	13.5%	15.5%

 (Source: IIFL Research)