Tepid 3Q; margin pickup remains key for a rerating

Company
25 Jan 2024
5 Min read 
  • Tech Mahindra reported 3QFY24 revenue of USD1.57b, up 1.1% QoQ in CC terms.
  •  Adjusted EBIT margin stood at 7.0%, down 30bp QoQ.
  •  TCV came in at USD381m, pulling down its trailing 12m TCV/book to bill.
  •  Restructuring initiatives under new leadership are positive, but impact may be gradual.
  •  Communications vertical is expected to decline in growth in FY24.
  •  Limited immediate benefits from margin improvement initiatives.
  •  Neutral rating maintained with a TP of INR1,360.
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