September
Results Preview | Sector: Technology
September 2016
2016 Results Preview | Sector: Technology
Technology
No fireworks this season
Brexit and impending US elections keep expectations muted
Expectations laid low by macro and company-specific warnings
The seasonal strength that leads to strongest sequential growth in the September
quarter is hardly expected to play out this time, as slowness in spending by the BFSI
vertical weighs on the industry. In dollar terms, growth will be pegged back further
by sharp depreciation of the GBP v/s the USD (-8.5% QoQ). Hopes of a positive
surprise are laid low by commentaries from some companies:
TCS cited that weakness in discretionary spending in US BFSI is likely to cause
sequential loss of momentum.
INFO suffered termination of a contract with RBS’ standalone UK bank, Williams
& Glyn (W&G), leading to gradual ramp down of as many as 3,000 employees.
MTCL cited expectation of sequential revenue decline in USD terms and lower
profitability due to cross-currency movements, delayed ramp-ups, project
cancellations and weakness in Bluefin.
Tepid constant currency growth marred further by GBP
Against the above backdrop, we see top-tier growth in constant currency
ranging from 0.1% to 3.1% QoQ and from 6.1% to 12.7% YoY.
In USD terms (including the impact from GBP depreciation and other
currencies), we expect growth of -0.5% to 2.5% QoQ and 4.6% to 11.5% YoY.
While TECHM may lead sequential growth at 3.1% CC, that would be from
contribution from three acquisitions (Target – 1 month, Pininfarina – 2 months
and Bio – 3 months), excluding which organic growth would be 1.5% QoQ CC.
Margins may follow revenues amid missing currency tailwind
While the GBP depreciated v/s the USD QoQ, the INR was flat QoQ. Amid softening
of revenue growth in the recent years, the industry’s profitability has held up,
thanks to significant depreciation of the INR. However, continued deceleration of
revenue growth, combined with investments necessary to transition to Digital have
weighed on margins. Normally, strong 2Q growth comes to the aid of margins, but
this quarter we see sequential movements ranging from -160bp to 30bp for tier-I
(wage hikes taking toll on HCLT the most) and from -130bp to 70bp for tier-II.
Estimate cuts not behind us, yet; watch for INFO’s guidance, TCS’ BFSI outlook
We believe there is room for estimates to moderate further, given the ask rates
implied in the current FY17 revenue estimates. This is especially given that the
seasonal weakness of 2H will be further exacerbated by current sluggish macro
and the US elections in November. To that extent, watch out for commentaries
suggesting any offsets from ramp-ups in large deals that have been delayed,
causing some growth impediment in recent quarters.
Watch out for the extent of cut in INFO’s guidance, along with commentary
from TCS on the expected impact from current BFSI spending in 2HFY17.
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 3982 5424
Sagar Lele
(Sagar.Lele@MotilalOswal.com); +91 22 3982 5585
October 2016
1
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.
Company Name
Cyient
HCL Technologies
Hexaware Technologies
Infosys
KPIT Technologies
MindTree Consulting
Mphasis
NIIT Tech
Persistent Systems
TCS
Tech Mahindra
Wipro
Zensar Technologies
Please refer our report dated
20 Sep 2016

September 2016 Results Preview | Sector: Technology
PAT decline seen in 2Q…
PAT decline led by margin contraction and forex losses
Aggregate PAT for tier-I is expected to decline by 2% YoY, and for tier-II, the
decline is expected to be 12.3% YoY. The primary reasons are
1.
Industry-wide margin pressure - EBITDA margins are expected to decline YoY
in 2QFY17 for all companies under our coverage (barring Mphasis). For tier-
I, we model decline of 120-270bp YoY, and for tier-II, we model decline of
160-510bp YoY.
2.
Forex losses – On a closing basis, INR appreciated 1.4% QoQ against the USD
in 2QFY17, due to which we expect some translation losses v/s forex gains in
2QFY16
Valuation and view: Triggers missing despite valuation comfort; prefer INFO, HCLT
Lest the macro turns for the better, we see further moderation in estimates,
limiting any upside triggers for the sector over the near term. Risks are lesser at
HCLT, given visibility from its unchanged guidance for the year, and TECHM, with
expectations within deliverable limits. From a medium-to-long-term
perspective, we prefer INFO and HCLT.
Given the traction in revenue growth (notwithstanding the cyclical speed
breaker) at INFO under its new leadership, we take greater comfort in its
valuations, compared to TCS, which too is citing challenges in BFSI – a risk to its
premium multiple.
Potential of double-digit organic growth at HCLT (substantiated by order book),
better growth compared to TECHM and WPRO, along with 25%+ RoE leaves
ample room for upside, despite embedding conservatism on the margin outlook.
Moreover, its exposure to IMS and Engineering Services makes it less vulnerable
to the weakness seen in BFSI.
Among the tier-II IT, we prefer
CYL
and
ZENT.
…led by margin pressure across the
board
Exhibit 1:
Earnings aggregate for 2QFY17
Sector
Cyient
HCL Technologies
Hexaware Tech.
Infosys
KPIT Tech.
Mindtree
MphasiS
Persistent Systems
TCS
Tech Mahindra
Wipro
Zensar Tech
Sector Aggregate
CMP
INR
482
809
191
1,038
127
489
538
640
2,412
421
479
1,009
Reco
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Buy
Sales (INR m)
Sep-16
% YoY
8,627
11.8
115,393
14.3
9,130
11.6
170,474
9.0
8,039
-1.0
13,225
13.1
15,039
-3.4
7,221
33.1
297,913
9.7
70,828
7.1
135,759
8.5
7,851
3.8
859,498
9.6
% QoQ
3.9
1.8
5.0
1.6
0.1
-0.4
-0.8
2.9
1.7
2.3
-0.2
3.0
1.4
EBDITA (INR m)
Sep-16
% YoY
% QoQ
1,063
-8.6
-2.5
23,832
7.8
-5.5
1,483
1.5
9.6
45,217
3.9
1.7
889
-21.5
3.9
1,777
-17.9
-8.9
2,486
6.0
1.7
1,044
2.6
-1.3
80,597
3.0
2.8
10,229
-7.1
-0.6
25,948
-4.9
-2.2
1,047
-10.6
-0.6
195,612
1.6
0.5
PAT (INR m)
Sep-16
% YoY
798
-19.0
18,505
1.5
1,088
-2.4
33,468
-1.5
471
-37.2
1,069
-32.5
2,100
10.5
609
-15.3
61,782
2.0
6,184
-21.3
20,139
-9.9
726
-20.6
146,939
-2.6
% QoQ
7.8
-9.4
8.9
-2.6
-14.4
-13.5
2.8
-16.9
-2.2
-5.7
-1.8
-4.9
-3.4
October 2016
2

September 2016 Results Preview | Sector: Technology
Exhibit 2:
Double-digit USD revenue growth (YoY) seen only in HCLT amongst tier-I
Company
TCS
Infosys
Wipro
HCLT
TECHM
Aggregate
Company
TCS
Infosys
Wipro
HCLT
TECHM
Aggregate
2QFY17E
4,446
2,544
1,922
1,722
1,057
11,692
2QFY17E
27.1
26.5
19.1
20.7
14.4
23.5
Revenue (USD m)
2QFY16
YoY (%)
1QFY17
4,156
7.0
4,362
2,392
6.4
2,501
1,832
4.9
1,931
1,545
11.5
1,691
1,011
4.6
1,032
10,935
6.9
11,516
EBITDA Margin (%)
2QFY16
YoY (%)
1QFY17
28.8
(170)
26.7
27.8
(130)
26.5
21.8
(270)
19.5
21.9
(120)
22.2
16.6
(220)
14.9
25.3
(178)
23.7
QoQ (%)
1.9
1.7
(0.5)
1.9
2.5
1.5
QoQ (%)
30
-
(40)
(160)
(43)
(21)
2QFY17E
298
170
136
115
71
790
2QFY17E
62
33
20
19
6
140
Revenue (INR b)
2QFY16
YoY (%)
1QFY17
QoQ (%)
272
9.7
293
1.7
156
9.0
168
1.6
125
8.5
136
(0.2)
101
14.3
113
1.8
66
7.1
69
2.3
720
9.7
779
1.4
PAT (INR b)
2QFY16
YoY (%)
1QFY17
QoQ (%)
61
2.0
63
(2.2)
34
(1.5)
34
(2.6)
22
(9.9)
21
(1.8)
18
1.5
20
(9.4)
8
(21.3)
7
(5.7)
143
(2.0)
145
(3.4)
Source: Company, MOSL
Exhibit 3:
Margin decline expected to be steep across tier-II (except MPHL), YoY
Company
Persistent Systems
Hexaware
KPIT Tech.
Mindtree
Mphasis
Cyient
NIIT Tech
Zensar
Aggregate
Company
Persistent Systems
Hexaware
KPIT Tech.
Mindtree
Mphasis
Cyient
NIIT Tech
Zensar
Aggregate
2QFY17E
108
136
120
197
229
129
100
117
1,019
2QFY17E
14.5
16.2
11.1
13.4
16.5
12.3
14.8
13.3
14.5
Revenue (USD m)
2QFY16
YoY (%)
1QFY17
83
29.9
105
125
8.9
129
125
(3.7)
120
180
9.5
199
237
(3.3)
224
118
8.7
124
104
(4.2)
99
116
0.7
114
973
4.8
1,000
EBITDA margin (%)
2QFY16
YoY (%)
1QFY17
18.7
(430)
15.1
17.8
(160)
15.6
13.9
18.5
15.1
15.1
17.6
15.5
15.0
(290)
(510)
150
(280)
(280)
(210)
(60)
10.7
14.7
16.1
13.1
15.3
13.8
15.4
QoQ (%)
2.9
5.4
0.2
(0.8)
2.1
3.8
0.7
2.8
1.9
QoQ (%)
(60)
70
40
(130)
40
(80)
(50)
(50)
(90)
2QFY17E
7.2
9.1
8.0
13.2
15.0
8.6
6.7
7.9
68.0
2QFY17E
0.6
1.1
0.2
1.1
2.1
0.8
0.5
0.7
6.4
Revenue (INR b)
2QFY16
YoY (%)
1QFY17
5.4
33.1
7.0
8.2
11.6
8.7
8.1
(1.0)
8.0
11.7
13.1
13.3
15.6
(3.4)
15.2
7.7
11.8
8.3
6.8
(1.3)
6.7
7.6
3.8
7.6
63.5
7.0
PAT (INR b)
2QFY16
YoY (%)
0.7
(15.3)
1.1
(2.4)
0.3
1.6
1.9
1.0
0.7
0.9
7.2
(35.4)
(32.5)
10.5
(19.0)
(23.3)
(20.6)
(12.3)
67.2
1QFY17
0.7
1.0
QoQ (%)
2.9
5.0
0.1
(0.4)
(0.8)
3.9
(0.1)
3.0
1.2
QoQ (%)
(16.9)
8.9
0.2
(6.6)
1.2
(13.5)
2.0
2.8
0.7
7.8
0.3
67.4
0.8
(4.9)
6.2
1.8
Source: Company, MOSL
October 2016
3

September 2016 Results Preview | Sector: Technology
Exhibit 4:
Macro-led weakness to dampen seasonal strength in tier-I (QoQ, CC %)
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
6.0
4.4
3.5
3.1
2.5
2.1
1.91.72.0
0.2
TCS
INFO
WPRO
2.7
2.0
0.1
HCLT
2.9
1.7
2.4
0.3
3.1
1.3
0.4
TECHM
Source: Company, MOSL
2QFY17
Exhibit 5:
YoY traction seen picking up only at HCLT, led by Volvo IT acquisition (YoY, CC %)
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
TCS
INFO
WPRO
HCLT
TECHM
Source: Company, MOSL
Exhibit 6:
TCS and HCLT to outperform peers organically (revenue growth, QoQ, USD, %)
9
7
5
3
1
-1
TCS
Infosys
Wipro
HCL Tech
Tech Mahindra
Source: Company, MOSL
Exhibit 7:
Incremental revenue to revive at TECHM, aided by acquisitions; cross-currency movements unsupportive again
1QFY16
225
150
75
0
-75
(50)
(60)
(60)
(60)
(30)
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
Cross currency impact on USD revenues (bp)
Incremental revenue (USDm)
Source: Company, MOSL
October 2016
4

September 2016 Results Preview | Sector: Technology
Exhibit 8:
Absence of strong seasonal margin expansion in 2QFY17
TCS
30
26
22
18
14
Infosys
HCL Tech
Wipro
Tech Mahindra
Exhibit 9:
Sequential improvement seen in some mid-caps due to company-specific
dynamics (revenue growth, QoQ, USD, %)
12.0
8.1
4.3
2.9
6.25.4
0.7 0.2
-0.8
-1.9
-1.0
3QFY16
4QFY16
1QFY17
2QFY17
6.1
2.3 1.7
-0.8
2.1
3.8
2.12.6
0.0
0.7
-1.2
-1.4
-2.5
3.12.8
-0.3
-1.6
-3.4
-3.5
Persistent Hexaware KPIT Tech. Mindtree Mphasis
Systems
Cyient
-1.4
-3.7
NIIT Tech
Zensar
Source: Company, MOSL
Exhibit 10:
2QFY17 currency highlights (INR)
USD
Average
Closing
66.95
66.61
Rates (INR)
EUR
GBP
74.8
74.4
88.0
86.4
AUD
50.8
50.8
USD
0.0%
-1.4%
Change (QoQ)
EUR
GBP
-1.1%
-1.1%
-8.4%
AUD
1.8%
-4.9%
0.8%
Source: Company, MOSL
Exhibit 11:
2QFY17 currency highlights (USD)
EUR
Average
Closing
1.12
1.12
Rates (USD)
GBP
1.31
1.30
AUD
0.76
0.77
EUR
-1.1%
1.2%
Change (QoQ)
GBP
-8.5%
AUD
1.7%
-2.5%
2.9%
Source: Company, MOSL
AUD
0.73
0.74
0.76
INR/USD
nm
67.12
66.95
Exhibit 12:
Cross currencies: Assumed rates v/s actual
Guided at
Infosys
Wipro
Actual (Average)
EUR
1.10
1.13
1.12
GBP
1.51
1.46
1.31
Change (%)
Infosys
Wipro
EUR
1.5%
-1.2%
GBP
-13.0%
-10.0%
AUD
INR/USD
3.9%
nm
2.5%
-0.2%
Source: Company, MOSL
October 2016
5

September 2016 Results Preview | Sector: Technology
Exhibit 13:
Relative performance—3m (%)
Sensex Index
110
105
100
95
90
MOSL Technology Index
Exhibit 14:
Relative performance—1Yr (%)
Sensex Index
110
104
98
92
86
MOSL Technology Index
Source: Bloomberg, MOSL
Source: Bloomberg, MOSL
Exhibit 15:
Comparative valuations
Company
TCS
Infosys
Wipro
HCL Tech
TechM
Mphasis
Mindtree
KPIT Tech
Cyient
Hexaware
NIIT Tech
Persistent Sys.
Zensar
Mcap Rating
USDb
70.9 Neutral
35.4 Buy
17.6 Neutral
17.1 Buy
6.2
1.7
0.6
0.4
0.8
0.9
0.4
0.8
0.7
Neutral
Neutral
Neutral
Neutral
Buy
Neutral
Neutral
Neutral
Buy
TP
(INR)
2,500
1,300
570
940
500
570
550
150
550
230
530
710
1,300
Upside
(%)
3.6
25.2
19.0
16.2
18.8
5.9
12.5
18.1
13.4
20.4
24.4
10.9
28.7
EPS (INR)
FY17E
131.3
61.5
34.2
55.3
31.0
39.8
29.6
13.2
33.2
13.6
39.5
38.2
75.7
FY18E
148.5
71.1
40.1
61.7
37.7
44.2
40.3
16.1
42.0
16.1
47.0
48.0
98.2
FY17E
18.4
16.9
14.0
14.6
13.6
13.5
16.5
9.6
14.6
14.0
10.8
16.8
13.3
P/E (x)
FY18E
16.2
14.6
12.0
13.1
11.2
12.2
12.1
7.9
11.6
11.9
9.1
13.3
10.3
RoE (%)
FY17E
33.1
22.7
17.6
25.9
18.4
13.3
19.7
17.4
15.8
26.6
14.5
17.5
22.0
FY18E
32.1
23.5
18.7
24.8
16.2
14.5
23.5
17.8
17.5
26.7
15.6
20.2
24.0
FY16-18E CAGR (%)
USD rev.
EPS
9.8
9.6
6.7
11.2
7.9
5.7
12.0
4.3
12.5
11.2
7.8
18.5
9.8
9.7
5.3
7.4
3.7
13.3
5.9
7.0
16.9
11.4
1.3
13.6
8.0
20.0
Source: MOSL
October 2016
6

September 2016 Results Preview | Sector: Technology
Cyient
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E June
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuation
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div yld (%)
15.5
3.0
12.4
1.6
15.8
2.6
11.2
1.4
14.6
2.3
9.6
2.1
11.6
2.0
7.3
2.6
2015
27.4
4.0
3.5
31.3
32.0
164.3
19.0
17.4
25.6
2016 2017E 2018E
31.0
4.2
3.3
30.7
(1.9)
186.6
16.5
15.1
22.8
35.6
4.8
3.7
33.2
8.2
209.9
15.8
14.9
30.0
41.8
6.0
4.7
42.0
26.3
239.3
17.5
16.6
30.0
CYL IN
112.2
54.4 /0.8
638/369
1/-8/20
CMP: INR485
TP: INR550 (+13%)
Buy
We expect CYL’s USD revenue to grow 3.8% QoQ in 2QFY17.
The guidance for Rangsons for FY17 is of 50% growth (~USD58m).
However, 1Q was soft at USD9m. Although growth is expected to
pick up, we are conservative in our assumptions given sustained
disappointment since its acquisition. We estimate revenue of
USD11m (+16% QoQ) for 2Q, and USD52m (34% YoY) for FY17.
In the core services business, CYL’s revenue is expected to grow
2.8% QoQ, led by strong traction in top accounts and momentum in
the verticals of Aerospace, Railway and Communication.
CYL has distributed its wage hike over 1Q and 2Q in FY17, and
hence, would see a negative impact sequentially. We expect EBITDA
margin to decline by 70bp QoQ, also factoring in the increased
revenue from lower margin Rangsons business.
PAT estimate for the quarter is INR798m, up 7.8% QoQ.
The stock trades at 14.6x FY17E and 11.6x FY18E EPS. Maintain
Buy.
Key issues to watch for
Update on problem verticals like Semiconductor, Energy and GIS.
Outlook for Rangsons for FY17 and progress on synergy through
DLM.
Margin trajectory going ahead.
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util incl. trainees (%)
Attrition (%)
Offshore rev. (%)
E: MOSL Estimates
1Q
114
-2.6
7,263
16.8
35.4
22.7
918
12.6
10.1
298
28.7
748
-20.3
9.2
6.7
11,507
75.4
18.8
44.7
FY16
2Q
3Q
118
118
3.6
0.0
7,717
7,818
14.8
9.8
36.6
34.4
21.6
20.3
1,164
1,102
15.1
14.1
12.6
11.3
299
246
23.5
20.8
985
869
31.7
-11.8
9.2
-13.9
8.8
7.7
11,311
11,481
76.1
76.7
21.6
20.6
44.6
43.3
4Q
121
2.1
8,158
11.7
34.2
21.1
1,063
13.0
9.4
222
20.4
844
-2.8
-10.1
7.5
11,569
73.3
18.4
41.0
1Q
124
2.6
8,306
14.4
35.2
22.1
1,090
13.1
10.4
116
25.5
740
-12.3
-1.1
6.6
12,297
75.5
19.9
44.6
FY17
2QE
3QE
129
135
3.8
4.5
8,627
9,147
11.8
17.0
33.0
32.9
20.7
19.4
1,063
1,233
12.3
13.5
10.0
11.3
174
378
24.0
24.0
798
1,078
7.8
35.1
-19.0
24.1
7.1
9.6
12,547
12,897
76.3
74.8
45.1
44.3
(INR Million)
FY16
FY17E
4QE
140
4.4
9,548
17.0
34.0
19.3
1,406
14.7
12.5
260
24.0
1,114
3.4
32.0
9.9
13,147
76.3
45.2
472
5.6
30,955
13.1
35.1
21.4
4,247
13.7
10.8
1,065
23.4
3,446
-1.9
30.7
11,569
528
11.8
35,627
15.1
33.8
20.3
4,792
13.5
11.1
928
24.3
3,730
8.2
33.2
13,147
October 2016
7

September 2016 Results Preview | Sector: Technology
HCL Technologies
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E JUNE
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuation
P/E (x)
P/BV (x)
EV/EBITDA
(x)
Div yld (%)
16.1
4.6
11.7
2.0
20.2
4.0
11.2
2.1
14.6
3.5
9.9
2.2
13.1
3.0
8.2
2.3
2015
370.6
87.0
72.6
50.4
11.7
177.0
31.7
29.2
31.8
2016
311.4
68.2
56.7
40.1
-20.3
200.2
21.5
19.9
42.4
2017E
471.7
99.2
78.7
55.3
37.9
234.3
25.9
23.7
32.5
2018E
541.4
113.6
88.3
61.7
11.5
274.1
24.8
23.1
30.8
HCLT IN
1412.9
1143 / 17
915 / 707
4 / -13 / -13
CMP: INR809
TP: INR940 (+16%)
Buy
We expect HCLT’s USD revenue to grow 1.9% QoQ in 2QFY17 (and
2.4% QoQ on a constant currency basis). Impact from cross
currency movement should shave off ~50bp from revenue growth.
We expect momentum to continue in the IMS business, and
stability in BPO (after the sharp decline seen in 1Q). Deal signings
over the last many quarters provide visibility and confidence in
execution of its 12-14% revenue growth guidance.
EBIT margin is likely to decline by 150bp to 19.1% because of wage
hikes and continued investments in the business. EBIT margin of 19-
19.3% over the remainder of the year is likely to lead to 19.5% EBIT
margin for FY17 – the lower end of the 19.5-20.5% guidance range.
PAT estimate for the quarter is INR18.5b, -9.4% QoQ, on lower
margins and lower other income (losses on hedges and translation).
The stock trades at 14.6x FY17E and 13.1x FY18E EPS. Maintain
Buy.
Key issues to watch for
Commentary on performance expectations for FY17.
Deal signings and order book.
Organic growth in IMS and traction in Engineering.
Quarterly Performance (US GAAP)
Y/E June
1Q
Revenue (USD m)
1,545
QoQ (%)
0.5
Revenue (INR m)
100,970
YoY (%)
15.6
GPM (%)
34.4
SGA (%)
12.5
EBITDA Margin (%)
21.9
EBIT Margin (%)
20.6
Other income
2,410
ETR (%)
21.3
PAT before EOI
18,230
QoQ (%)
2.3
YoY (%)
6.1
EPS
12.9
Headcount
105,571
Util excl. trainees (%)
83.6
Attrition (%)
16.3
Fixed Price (%)
56.2
E: MOSL Estimates, *: 9 month year
FY16*
2Q
1,566
1.4
103,410
11.4
34.6
13.0
21.5
20.0
3,550
20.9
19,190
5.3
-0.2
13.6
103,696
84.7
16.7
57.0
3Q
1,587
1.3
106,980
15.4
34.9
12.7
22.2
20.8
2,000
20.5
19,250
0.3
14.3
13.6
104,896
85.6
17.3
56.8
1Q
1,691
6.5
113,360
15.9
34.4
12.1
22.2
20.6
2,530
21.0
20,430
6.1
14.6
14.5
107,968
85.8
17.8
60.9
FY17
2QE
3QE
1,722
1,765
1.9
2.5
115,393
120,006
14.3
16.0
32.3
32.4
11.7
11.6
20.7
20.8
19.1
19.3
1,588
2,588
21.5
21.5
18,505
20,172
-9.4
9.0
1.5
5.1
13.1
14.1
110,268
113,268
85.7
85.3
FY16*
4QE
1,808
2.5
122,953
14.9
32.0
11.6
20.5
19.0
1,580
21.5
19,550
-3.1
1.6
13.7
116,268
85.0
4,698
-21.1
311,360
-16.0
34.6
12.7
21.9
20.5
7,960
20.9
56,670
-20.2
40.1
104,896
81.8
(INR m)
FY17E
6,986
48.7
471,712
51.5
32.8
11.7
21.0
19.5
8,286
21.4
78,658
38.8
55.3
116,268
83.1
October 2016
8

September 2016 Results Preview | Sector: Technology
Hexaware Technologies
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E DEC
Sales
EBITDA
PAT
EPS (INR)
EPS Gr.
(%)
BV/Sh.
(INR)
RoE (%)
RoCE (%)
Payout (%)
Valuation
P/E (x)
P/BV (x)
EV/EBITDA
(x)
Div yld (%)
18.0
4.5
10.7
4.4
14.8
4.0
9.7
4.5
14.0
3.5
9.3
3.0
11.9
2.9
7.3
2.5
2014
25.8
4.8
3.3
10.6
-15.9
42.9
25.7
27.6
77.4
2015
31.2
5.4
3.9
12.9
22.1
47.4
28.9
27.7
64.5
2016E
35.5
5.7
4.1
13.6
5.1
55.0
26.6
24.1
40.9
2017E
41.6
7.1
4.9
16.1
18.1
65.0
26.7
26.1
29.0
HEXW IN
301.8
58 / 1
274 / 184
-2 / -41 / -32
CMP: INR191
TP: INR230 (+20%)
Neutral
We expect USD revenue to grow 5.1% QoQ to USD136.3m. In
1QCY16, HEXW was impacted by client-specific issues. It expects
growth for the year to be dominated by 2Q and 3Q. In line with this,
2Q saw a sharp revival: 6.6% QoQ growth. We expect the strength
to continue, and lead to 5.8% QoQ CC growth in 3Q.
EBITDA margin declined by 240bp YoY in 1HCY16. However, this
trend is expected to reverse with resurrection of revenue growth
momentum. We expect EBITDA margin improvement of 60bp QoQ
to 16.2% in 3QCY16.
The expansion, however, won’t be sufficient to reach the
management’s desired level of 17% in CY16, especially given the
upcoming wage hike in 2H.
Our PAT estimate for the quarter is INR1,088m, up 8.9% from the
previous quarter, on the back of strong revenue growth and margin
expansion.
The stock trades at 14x CY16E and 11.9x CY17E earnings.
Neutral.
Key issues to watch for
Large deal pipeline and traction post the increased S&M spend.
Commentary on sustenance of revenue growth.
Margin outlook for the remainder of the year.
(INR m)
Quarterly Performance (Indian GAAP)
Y/E Dec
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Utilization (%)
Attrition (%)
Offshore rev. (%)
E: MOSL Estimates
1Q
114.9
0.3
7,134
21.1
35.7
17.9
17.8
16.2
-96
21.2
834
-11.2
18.6
2.8
10,100
73.6
16.6
41.1
CY14
2Q
3Q
121.3
125.1
5.6
3.1
7,722
8,184
26.5
22.0
35.0
35.3
17.8
17.4
17.1
17.8
15.6
16.4
84
97
23.5
22.4
989
1,115
18.6
12.7
29.3
29.7
3.3
3.7
11,009
11,341
72.1
70.4
17.1
17.4
38.8
39.2
4Q
124.1
-0.8
8,195
15.1
34.7
18.8
15.9
14.3
88
21.0
994
-10.9
5.9
3.3
11,375
69.7
16.9
37.7
1Q
121.7
-1.9
8,202
15.0
33.6
19.0
14.6
12.9
55
24.2
842
-15.3
1.0
2.8
11,599
69.6
16.0
36.9
CY15
2Q
3QE
129.7
136.3
6.6
5.1
8,697
9,130
12.6
11.6
34.6
34.5
19.0
18.3
15.6
16.2
14.0
14.7
132
127
25.8
25.8
999
1,088
18.6
8.9
1.0
-2.4
3.3
3.6
11,875
12,318
70.0
72.0
16.6
36.1
37.1
CY15
4QE
139.8
2.6
9,503
16.0
34.9
17.8
17.1
15.5
143
25.8
1,200
10.3
20.7
4.0
12,651
73.0
38.4
485
14.9
31,235
21.0
35.1
18.0
17.1
15.6
173
22.1
3,932
20.4
12.9
11,375
72.3
39.2
CY16E
527
8.6
35,532
13.8
34.4
18.5
15.9
14.3
457
25.5
4,129
5.0
13.6
12,651
72.2
37.1
October 2016
9

September 2016 Results Preview | Sector: Technology
Infosys
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yield (%)
21.7
4.9
15.8
1.6
17.6
3.8
11.9
2.4
16.9
3.4
10.6
2.9
14.6
3.1
8.8
2.9
2015
533.2
149.0
123.3
53.9
15.8
240
26.0
24.1
34.3
2016 2017E 2018E
624.4
170.8
134.9
59.0
9.4
270.3
24.7
23.2
41.9
695.4
185.4
140.5
61.5
4.1
301.3
22.7
21.5
48.8
798.3
216.8
162.4
71.1
15.6
336.2
23.5
22.3
42.2
INFO IN
2285.6
2372 / 36
1278 / 1009
2 / -26 / -19
CMP: INR1,038
TP: INR1,300 (+25%)
Buy
INFO cut its revenue growth guidance for FY17 after 1Q to 10.5-12%
(3-4% CQGR), from 11.5-13.5% (3-3.7% CQGR) earlier. However,
following the termination of RBS contract and further worsening of
the macro, it cited further likelihood of a guidance cut.
In USD terms, our revenue growth estimate is 1.7% QoQ on the
back of 30bp impact of cross-currency movement.
Although we expect higher sequential growth in 2Q (2% v/s 1.7% in
1Q), the annual guidance is likely to be revised downward.
We expect EBITDA margin to remain flat QoQ at 26.5%, as revenue
growth momentum has been affected over the last two quarters.
Our PAT estimate is INR33.47b, -2.6% QoQ, led by lower other
income (loss on translation).
The stock trades at 16.9x FY17E and 14.6x FY18E earnings.
Buy.
Key issues to watch for
FY17 revenue guidance.
TCV of deal wins during the quarter.
Commentary around contribution of newly launched services.
Commentary around macro, verticals, margins and pricing.
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util excl. trainees (%)
Attrition (%)
Offshore rev. (%) (IT Serv)
Fixed Price (%)
E: MOSL Estimates
1Q
2,256
4.5
143,540
12.4
38.6
12.4
26.2
24.0
7,580
27.9
30,300
-2.2
5.0
13.3
179,523
80.9
19.2
43.9
42.4
FY16
2Q
3Q
4Q
2,392
2,407
2,446
6.0
0.6
1.6
156,350 159,020 165,500
17.2
15.3
23.4
40.1
39.5
40.5
12.3
12.3
12.5
27.8
27.2
28.0
25.5
24.9
25.5
7,930
8,020
7,720
29.0
27.2
27.9
33,980 34,650 35,970
12.1
2.0
3.8
9.8
6.6
16.1
14.9
15.2
15.7
187,976 193,383 194,044
82.0
81.4
80.8
19.9
18.1
17.3
43.9
43.5
43.5
44.0
44.6
45.1
1Q
2,501
2.2
167,820
16.9
38.7
12.2
26.5
24.1
7,530
28.4
34,360
-4.5
13.4
15.0
197,050
81.1
21.0
43.0
45.7
FY17
2QE
3QE
2,544
2,598
1.7
2.1
170,474
176,663
9.0
11.1
38.8
39.1
12.3
12.4
26.5
26.7
24.1
24.5
6,035
8,159
29.0
29.0
33,468
36,520
-2.6
9.1
-1.5
5.4
14.6
16.0
206,239
209,464
82.7
80.9
FY16
4QE
2,653
2.1
180,424
9.0
39.4
12.5
26.9
24.7
6,404
29.0
36,134
-1.1
0.5
15.8
215,349
80.8
9,501
9.1
624,410
17.1
39.7
12.4
27.4
25.0
31,250
28.0
134,930
9.4
59.0
194,044
81.7
(INR m)
FY17E
10,297
8.4
695,381
11.4
39.0
12.4
26.7
24.4
28,128
28.8
140,502
4.1
61.5
215,349
81.5
October 2016
10

September 2016 Results Preview | Sector: Technology
KPIT Technologies
Bloomberg
Equity Shares (m)
M.Cap. (INR b) /(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Financial Snapshot (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div yld (%)
10.7
1.9
6.5
0.9
9.0
1.8
5.0
1.2
9.6
1.5
4.3
1.6
7.9
1.3
3.0
1.6
2015
29.9
3.3
2.4
11.8
-7.9
65.7
18.4
16.8
10.1
2016
32.2
4.4
3.0
14.1
19.0
69.0
21.0
24.3
10.6
2017E
33.2
4.3
2.6
13.2
-6.4
82.8
17.4
20.6
15.2
2018E
37.3
5.2
3.2
16.1
22.5
99.0
17.8
21.8
12.4
KPIT IN
200.2
25.4/0.4
197/107
-1/-29/12
CMP: INR127
TP: INR150 (+18%)
Neutral
1QFY17 for KPIT was marked by 3.5% QoQ revenue decline and
550bp margin decline.
Internal changes in structure, changing business environment and
pressure in traditional ERP implementation resulted in the pressure.
The situation is not expected to reverse in 2Q.
Post the sharp decline seen in 1Q, we expect revenue of US120m
(0.2% QoQ), led by stability in the top client, post a 12% QoQ
decline in 1Q.
With cessation of the revenue decline, we expect EBITDA margin to
expand by 40bp QoQ, reversing a wee bit of 550bp decline in the
previous quarter.
Our PAT estimate is INR471m, -14.4% QoQ, because of the
compounding of flat revenue and lower other income.
KPIT trades at 9.6x FY17E and 7.9x FY18E earnings. Maintain
Neutral.
Key issues to watch for
Growth in IES, Engineering Services and top client.
Margin performance and guidance.
Commentary on deal wins across segments.
Plan to recoup revenue growth and profitability.
(INR m)
FY17E
492
0.4
33,245
3.1
30.1
17.1
13.0
10.6
313
293
25.7
2,639
-6.2
13.2
11,575
70.4
41.9
Quarterly Performance (Indian GAAP)
Y/E March
1Q
Revenue (USD m)
118
QoQ (%)
-3.3
Revenue (INR m)
7,583
YoY (%)
9.9
GPM (%)
28.1
SGA (%)
18.5
EBITDA Margin (%)
9.6
EBIT Margin (%)
7.3
Other income
106
Interest
47
ETR (%)
27.9
PAT
444
QoQ (%)
-11.8
YoY (%)
-12.6
EPS (INR)
2.2
Headcount
10,839
Util excl. trainees (%)
66.4
Offshore rev. (%)
44.7
Fixed Price (%)
26.2
E: MOSL Estimates
FY16
2Q
3Q
125
123
5.3
-1.0
8,123
8,130
7.2
4.3
32.1
32.9
18.1
18.3
14.0
14.6
11.9
12.3
86
36
44
35
25.4
26.5
751
735
69.1
-2.1
6.3
12.5
3.8
3.7
10,659
10,559
69.7
69.1
44.9
41.2
27.1
29.1
4Q
124
0.7
8,407
10.2
35.3
19.1
16.1
13.6
20
25
13.4
885
20.4
75.7
4.4
10,910
70.2
42.1
26.4
1Q
120
-3.5
8,032
5.9
28.9
18.3
10.7
8.3
116
56
24.3
551
-37.8
24.0
2.8
11,288
68.1
41.5
28.5
FY17
2QE
3QE
120
124
0.2
3.4
8,039
8,438
-1.0
3.8
29.1
30.9
18.0
16.3
11.1
14.6
8.6
12.2
24
127
82
79
26.0
26.0
471
799
-14.4
69.5
-37.2
8.7
2.4
4.0
11,247
11,316
69.2
71.2
41.9
41.9
FY16
4QE
128
3.5
8,736
3.9
31.3
15.9
15.4
13.0
46
76
26.0
818
2.4
-7.5
4.1
11,575
73.0
42.5
490
0.3
32,243
7.8
32.2
18.5
13.5
11.4
248
152
22.8
2,815
18.7
14.1
10,910
68.8
43.2
October 2016
11

September 2016 Results Preview | Sector: Technology
MindTree
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MARCH
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuation
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yld (%)
15.3
4.1
10.3
1.7
13.6
3.4
9.4
2.1
16.5
3.1
9.6
2.5
2015
35.6
7.1
5.4
31.9
18.6
119.8
29.4
32.8
26.6
2016 2017E 2018E
46.9
8.3
6.0
35.9
15.3
142.4
27.4
30.6
29.3
54.3
8.0
5.0
29.6
-17.4
158.4
19.7
22.6
40.5
62.8
10.8
6.8
40.3
35.9
184.1
23.5
29.3
29.8
MTCL IN
167.7
82 / 1
804 / 464
-10 / -39 / -42
CMP: INR489
TP: INR550 (+13%)
Neutral
Earlier during the quarter, MTCL guided for a decline in 2Q revenue
due to [1] cross-currency movements, [2] project cancellations, [3]
slower ramp-up at a few large clients from different verticals, and
[4] continued weakness in Bluefin.
Consequently, EBITDA margin too is expected to decline QoQ,
accentuated by expected EBITDA loss in Bluefin.
In line with this, we expect revenue decline of 0.8% QoQ and
EBITDA margin decline of 130bp QoQ.
We expect the trend of robust deal wins to continue. The company
won deals with TCV of USD898m LTM (average of USD225m per
quarter), of which 40% is Digital.
Our PAT estimate for the quarter is INR1.1b, which implies 13.5%
QoQ decline.
The stock trades at 16.5x FY17E and 12.1x FY18E earnings.
Neutral.
Key issues to watch for
Guidance for growth in 2H, especially in the verticals of BFSI and
12.1
Retail.
2.7
7.0
Margin trajectory, going forward, given the increased investments
and revenue growth issues.
2.5
Deal wins during the quarter and growth in Digital.
(INR m)
FY17E
806
12.6
54,323
15.8
35.5
20.7
14.8
10.9
655
24.1
4,978
-17.5
29.6
16,610
71.6
40.4
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util incl. trainees (%)
Attrition (%)
Offshore rev. (%)
Fixed Price (%)
E: MOSL Estimates
1Q
155
4.8
9,816
16.4
41.8
24.2
17.6
14.3
374
22.4
1,382
7.4
6.8
8.2
14,427
70.3
18.4
51.9
48.9
FY16
2Q
3Q
180
184
16.4
2.3
11,693
12,145
31.6
33.2
41.3
40.3
22.8
22.6
18.5
17.7
15.8
14.8
195
147
22.5
22.6
1,582
1,509
14.5
-4.6
15.1
7.2
9.4
9.0
15,582
16,243
71.4
68.5
17.1
16.0
47.6
45.5
49.7
50.0
4Q
196
6.1
13,242
44.2
38.1
21.0
17.1
14.4
94
22.2
1,560
3.4
21.2
9.3
16,623
69.4
15.7
42.4
47.7
1Q
199
2.1
13,276
35.8
37.0
22.3
14.7
10.8
198
24.2
1,235
-7.1
-3.7
7.4
16,110
71.4
16.5
40.5
48.7
FY17
2QE
3QE
197
202
-0.8
2.5
13,225 13,765
13.1
13.3
33.9
35.0
20.5
20.0
13.4
15.0
9.5
11.2
156
169
24.0
24.0
1,069
1,295
-13.5
21.2
-32.5
-14.2
6.4
7.7
16,010 16,310
71.3
71.5
40.5
40.3
FY16
4QE
207
2.1
14,057
6.5
35.9
20.0
15.9
12.0
132
24.0
1,379
6.5
3.7
8.2
16,610
72.0
40.4
715
22.5
46,896
31.7
40.2
22.5
17.7
14.9
810
22.4
6,034
12.5
35.9
16,623
69.9
46.6
October 2016
12

September 2016 Results Preview | Sector: Technology
Mphasis
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)*
BV/Sh. (INR)
RoE (%)*
RoCE (%)*
Payout (%)
Valuations
P/E (x)*
P/BV (x)
EV/EBITDA(x)*
Div yld (%)
2015
57.9
8.7
6.8
32.3
-8.6
260.8
12.8
11.5
49.6
16.7
2.1
10.5
3.0
2016 2017E 2018E
60.9
9.0
7.2
34.5
6.8
299.4
12.3
11.2
0.0
15.6
1.8
9.9
0.0
61.6
10.0
8.3
39.8
15.5
296.0
13.3
12.5
93.0
13.5
1.8
9.0
6.9
71.3
11.9
9.3
44.2
11.1
313.8
14.5
13.9
49.7
12.2
1.7
7.4
4.1
MPHL IN
210.1
113 / 2
622 / 398
-3 / 3 / 23
CMP: INR538
TP: INR570 (+6%)
Neutral
In 1QFY17, HP channel revenue declined by 4.2% QoQ to USD52m,
implying a run-rate of USD204m. This is expected to stabilize in 2Q,
post the renewed MSA coming into effect, after the completion of
the transaction between HPE and Blackstone.
We expect revenue growth of 2.1% QoQ – driven by stability in HP
channel and Digital Risk and continued traction in the Direct
International business in 2Q.
EBITDA margin is likely to expand 40bp QoQ to 16.5% despite wage
hikes because of the continued improvement in revenue mix and
higher incremental growth from the Direct International business.
MPHL had raised its EBIT margin guidance by 100bp at the end of
4QFY16 to 14-16% for FY17, and expressed confidence in achieving
the higher end of the range.
Our PAT estimate is INR2.1b (+2.8% QoQ).
The stock trades at 13.5x FY17E and 12.2x FY18E EPS. Neutral.
*Annualized values for 5m FY14
Key issues to watch for
Outlook for Digital Risk.
Deal TCV during the quarter in Direct Channel (organic business),
and focus areas.
Performance in Direct International business, and outlook for the
year.
FY17E
Sep 16
229.1
2.1
15,039
-3.4
28.4
11.9
16.5
15.5
594
27.7
2,100
2.8
-26.3
10.0
21,091
-1283
FY16
Dec 16
233
1.5
15,551
2.5
27.9
11.7
16.1
15.1
548
27.7
2,080
-1.0
-20.1
9.9
21,411
320
Mar 17
237
2.1
15,858
4.6
28.1
11.7
16.4
15.4
518
27.7
2,127
2.3
-26.2
10.1
21,856
445
926
-2.2
60,879
5.1
26.6
11.8
14.7
13.5
1,954
27.1
7,242
6.9
34.5
22,324
-11735
(INR m)
FY17E
924
-0.2
61,615
1.2
28.1
11.8
16.3
15.3
2,231
27.7
8,349
15.3
39.8
21,856
-468
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Net Additions
HP Channel rev. (%)
Fixed Price (%)
E: MOSL Estimates
Jun 15
234
1.9
14,964
0.4
26.1
11.8
14.1
12.7
564
27.3
1,742
-2.0
-0.3
8.3
34,159
100
28.8
12.3
FY16
Sep 15
Dec 15
237
229
1.1
-3.4
15,575
15,167
6.3
7.5
26.9
25.6
11.9
11.3
15.1
14.3
13.9
13.2
492
456
26.4
27.7
1,900
1,736
9.1
-8.6
18.6
5.1
9.0
8.3
24,169
23,563
-9990
-606
26.5
24.2
14.0
19.2
Mar 16
225
-1.6
15,173
6.2
27.6
12.1
15.4
14.3
442
27.1
1,864
7.4
4.9
8.9
22,324
-1239
24.3
21.1
Jun 16
224
-0.3
15,167
1.5
28.1
12.0
16.1
15.2
572
27.7
2,043
6.4
-17.9
9.7
22,374
50
23.4
19.8
October 2016
13

September 2016 Results Preview | Sector: Technology
Persistent Systems
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MARCH
2015
Sales
18.9
EBITDA
3.9
Adj. PAT
2.9
Adj. EPS (INR)
36.3
EPS Gr. (%)
16.6
RoE (%)
22.1
RoCE (%)
18.6
Payout (%)
27.5
Valuations
P/E (x)
17.6
P/BV (x)
3.5
EV/EBITDA (x)
10.6
Div. Yield (%)
1.6
PSYS IN
80.0
51 / 1
797 / 501
5 / -25 / -9
2016 2017E 2018E
23.1 29.7
34.5
4.2
4.7
5.9
3.0
3.1
3.8
37.2 38.2
48.0
2.3
2.7
25.8
19.5 17.5
20.2
18.9 16.9
15.9
29.6 31.4
25.0
17.2
3.0
10.1
1.7
16.8
2.7
8.4
1.9
13.3
2.6
6.5
1.9
CMP: INR640
TP: INR710 (+11%)
Neutral
Revenue growth is expected to be strong at PSYS, led by the
Enterprise segment and pick-up in the recently announced IBM
Watson deal. Aided by these factors, we expect 2QFY17 revenue to
grow 2.9% QoQ to USD108m.
We expect gradual pick up in IBM Watson IoT deal revenue, with
highest absolute revenue and consequently, margins in the
December quarter.
However, EBITDA margin is expected to be under pressure because
of wage hikes effective this quarter (230-240bp impact), offset by
missing visa costs of 1Q and operational efficiencies. As a result of
this, we expect 60bp QoQ decline in EBITDA margin to 14.5%.
Our PAT estimate for the quarter is INR609m, down 16.9% QoQ,
owing to lower margins and lower other income.
The stock trades at 16.8x FY17E and 13.3x FY18E earnings.
Neutral.
Key issues to watch for
Performance and outlook for top clients in ISV (ex-IBM).
Commentary on traction with Enterprise customers and potential
of winning large deals.
Outlook on sustainable profit margins in the near to medium
term.
(INR m)
FY17E
440
25.2
29,720
28.5
35.3
19.5
15.8
11.0
808
25.2
3,053
2.7
38.2
9,909
74.4
29.1
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
QoQ (%)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util excl. trainees (%)
Attrition (%)
IP rev. proportion(%)
E: MOSL Estimates
1Q
78.6
-1.8
5,004
0.6
15.0
39.7
20.4
19.4
14.8
198
28.5
672
-11.6
-2.3
8.4
8,454
72.9
16.4
18.4
FY16
2Q
3Q
83.0
89.7
5.5
8.1
5,427
5,921
8.5
9.1
16.9
19.7
38.9
38.8
20.2
20.1
18.7
18.8
14.4
14.6
182
160
25.5
24.4
718
775
6.9
7.8
0.7
4.1
9.0
9.7
8,545
8,966
76.1
74.5
17.1
17.1
16.2
20.1
4Q
100.4
12.0
6,771
14.4
36.1
35.7
19.8
15.9
12.1
210
21.4
808
4.3
6.3
10.1
9,264
75.2
16.4
28.2
1Q
104.8
4.3
7,018
3.6
40.2
34.7
19.6
15.1
10.2
253
24.3
733
-9.3
9.0
9.2
9,389
75.3
16.7
28.2
FY17
2QE
107.8
2.9
7,221
2.9
33.1
33.6
18.7
14.5
9.6
126
25.5
609
-16.9
-15.3
7.6
9,569
76.5
27.9
FY16
3QE
112.4
4.3
7,644
5.9
29.1
35.9
18.8
16.6
12.0
255
25.5
873
43.4
12.7
10.9
9,739
75.0
30.1
4QE
115.3
2.5
7,837
2.5
15.7
36.6
19.4
16.7
12.1
174
25.5
839
-3.9
3.8
10.5
9,909
75.0
30.1
352
14.0
23,123
22.3
38.1
20.1
18.0
13.9
750
24.8
2,974
2.3
37.2
9,264
74.7
21.1
October 2016
14

September 2016 Results Preview | Sector: Technology
NIIT Technologies
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
NITEC IN
61.2
26.1/0.4
632/335
8/-27/18
CMP: INR 426
TP: INR530 (+24%)
Neutral
Financial Snapshot (INR b)
Y/E MARCH
FY15 FY16 FY17E FY18E
Sales
23.7
26.8
27.8
30.3
EBITDA
3.5
4.7
4.6
4.7
PAT
1.9
2.8
2.8
2.9
EPS (INR)
18.8
45.7
39.5
47.0
EPS Gr. (%)
-51.7 143.7 -13.6
18.9
BV/Sh. (INR)
223.7 259.8 284.3 318.1
RoE (%)
8.5
19.0
14.5
15.6
RoCE (%)
14.6
18.6
15.9
14.4
Payout (%)
50.6
21.9
27.8
23.4
Valuations
P/E (x)
22.7
9.3
10.8
9.1
P/BV (x)
1.9
1.6
1.5
1.3
EV/EBITDA (x)
6.6
4.8
4.9
4.4
Div Yld (%)
2.2
2.3
2.6
2.6
We expect revenue growth for NITEC to remain subdued in 2Q.
Although deal wins have been strong for NITEC in recent quarters,
the company witnessed couple of sizeable project completions in
the last quarter, and some delays in the commencement of new
deals. This is expected to contain any revenue growth in 2Q.
We expect USD revenue decline of 0.8% in 2Q, also aggravated by
cross-currency movement, given the higher exposure of NITEC to
GBP, which declined by 8.5% QoQ against the USD.
Deal wins in international geographies are expected to continue
showing strength.
Consequent to the subdued revenue growth, we expect EBITDA
margin to decline by 50bp QoQ to 14.8%.
Our PAT estimate is INR524m, down 27.2% QoQ, driven by (a)
decline in revenue and margins, and (b) lower other income.
The stock trades at 10.8x FY17E and 9.1x FY18E earnings. Neutral.
Key issues to watch for
Traction in the international business.
Demand environment and update on ramp-up delays.
Deal wins.
Commentary on margin targets, going ahead.
FY17
2QE
3QE
98
101
-0.8
2.3
6,688
7,154
-1.3
5.4
34.8
37.4
20.0
19.5
14.8
17.9
10.5
13.8
27
95
22.0
22.0
46.0
46.0
524
801
-27.2
52.8
-23.3
8.0
8.5
13.0
9,072
9,372
78.0
77.5
FY16
4QE
103
2.3
7,262
6.1
37.0
19.0
18.0
14.0
53
22.0
46.0
787
-1.7
-0.3
12.8
9,522
78.0
406
8.6
26,824
338.9
37.0
19.5
17.6
13.5
183
21.8
170.0
2,801
145.9
45.8
9,476
79.2
40.0
(INR m)
FY17E
401
-1.2
27,796
333.6
36.2
19.6
16.5
12.4
246
19.5
184.0
2,425
-13.4
39.5
9,522
78.3
38.6
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m) Ex. forex
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
Minority Interest
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util excl. trainees (%)
Attrition (%)
Offshore rev. (%)
Fixed Price (%)
1Q
98
5.9
6,411
11.0
36.4
20.1
16.3
12.0
79
25.9
40.0
587
-433.5
35.6
9.6
9,228
79.5
14.3
39.0
42.0
FY16
2Q
104
6.2
6,779
15.2
37.2
19.6
17.6
13.7
13
22.9
43.0
683
16.4
70.8
11.2
9,592
79.7
13.7
41.0
41.0
3Q
103
-0.9
6,787
14.0
37.3
19.1
18.2
14.2
52
20.9
48.0
741
8.5
53.7
12.1
9,517
78.7
13.6
41.0
43.0
3Q
102
-1.2
6,847
12.0
37.1
18.7
18.4
14.2
39
18.2
39.0
790
6.6
-548.9
12.9
9,476
79.0
13.6
39.0
46.0
1Q
99
-2.5
6,692
4.4
35.3
20.0
15.3
10.9
71
10.3
46.0
720
-8.9
22.7
5.1
9,022
79.8
13.6
39.0
46.0
October 2016
15

September 2016 Results Preview | Sector: Technology
TCS
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuation
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div. yield (%)
21.8
8.4
16.7
3.3
19.5
6.7
14.6
1.8
18.0
5.5
13.4
1.9
15.9
4.6
11.5
2.3
2015
2016E
2017E
2018E
373.8
298.1
148.5
13.1
503.7
31.5
30.7
37.0
946.5 1,086.5 1,216.2 1,396.5
272.9
217.0
110.8
13.5
293.4
39.0
37.8
71.3
306.8
242.7
123.5
11.5
371.4
38.2
36.8
35.2
329.3
263.5
134.1
8.5
422.9
33.5
32.4
34.8
TCS IN
1970.4
4752 / 71
2769 / 2119
-3 / -14 / -16
CMP: INR 2,412
TP: INR2,500 (+4%)
Neutral
During the quarter, TCS cited growth concerns because of a
sequential loss in momentum, led by weakness in BFSI discretionary
spend in the US.
We expect little impact from seasonal strength in 2Q for TCS, and
estimate 2.5% QoQ CC growth.
We believe the pullback in discretionary spending will weigh on
margins too, derailing the company at least for FY17, from its
targeted margin band of 26-28%. Our EBIT margin estimate for 2Q is
25.4% QoQ (+40bp QoQ), below the lower end of the guided range.
Before the update by TCS, we were estimating 80bp margin
expansion, given the assumption of accelerating revenue growth in
2Q.
Our PAT estimate stands at INR61.8b (-2.2% QoQ). The decline is led
by lower other income, which is impacted by forex losses.
The stock trades at 18x FY17E and 15.9x FY18E earnings.
Neutral.
Key issues to watch for
Growth in troubled segments—Energy, Telecom, Insurance.
Outlook on revenue from TCS Japan.
Traction in new Digital initiatives (automation/solutions).
Outlook for BFSI vertical going ahead.
(INR m)
FY17E
18,002
8.8
1,216,157
11.9
44.1
17.0
27.1
25.5
30,554
24.0
258,704
6.8
131.3
388,145
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
CC QoQ rev gr (%)
Attrition (%)
E: MOSL Estimates
1Q
4,036
3.5
256,681
16.1
44.9
16.8
28.1
26.3
7,707
23.2
57,086
-3.3
12.9
29.1
324,935
3.4
15.9
FY16
2Q
3Q
4,156
4,145
3.0
-0.3
271,655 273,640
14.1
11.7
45.5
45.6
16.7
17.3
28.8
28.3
27.1
26.6
6,751
6,990
24.1
23.2
60,553
61,095
6.1
0.9
14.5
12.2
30.8
31.0
335,620 344,691
3.9
0.5
16.2
15.9
4Q
4,207
1.5
284,486
17.5
44.8
17.0
27.8
26.1
9,050
23.7
63,412
3.8
7.4
32.3
353,843
2.1
15.5
1Q
4,362
3.7
293,050
14.2
43.9
17.1
26.7
25.1
9,630
24.0
63,179
-0.4
10.7
32.1
362,079
3.1
13.6
FY17E
2QE
3QE
4QE
4,446
4,537
4,657
1.9
2.0
2.7
297,913 308,492 316,703
9.7
12.7
11.3
43.9
44.2
44.3
16.8
17.2
16.9
27.1
27.0
27.4
25.4
25.5
25.9
5,540
9,191
6,193
24.0
24.0
24.0
61,782 66,674 67,069
-2.2
7.9
0.6
2.0
9.1
5.8
31.4
33.8
34.0
371,803 379,264 388,145
2.5
2.0
2.7
FY16
16,544
7.1
1,086,462
14.8
45.2
17.0
28.2
26.5
30,498
23.6
242,146
11.6
123.2
353,843
October 2016
16

September 2016 Results Preview | Sector: Technology
Tech Mahindra
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MARCH
Sales
EBITDA
Adj. PAT
Adj. EPS (INR)
EPS Gr. (%)
BV/Sh.(INR)
RoE (%)
RoCE (%)
Payout (%)
Valuation
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div. Yield (%)
14.2
3.0
8.1
1.4
12.0
2.5
7.5
2.9
13.1
2.2
8.1
2.1
11.2
2.0
6.5
2.1
2015
41.5
26.3
29.6
3.0
24.5
20.5
20.5
2016 2017E 2018E
43.4
31.2
35.1
18.4
23.4
20.1
34.2
44.1
28.5
32.1
-8.5
18.4
16.1
28.2
52.3
33.5
37.7
17.6
16.2
16.8
23.2
224.8 264.9 290.0 329.1
TECHM IN
984.7
414 / 6
579 / 408
-10 / -21 / -33
CMP: INR 421
TP: INR500 (+19%)
Neutral
142.2 165.6 191.0 213.5
We expect 3.1% QoQ CC growth in TECHM’s revenue. In USD terms,
we expect TECHM’s revenue to grow by 2.5% QoQ – 60bp negative
impact of cross-currency movement.
In Telecom, 2Q is expected to be under pressure because of
consolidation of revenue in LCC. In Enterprise, growth is expected
to continue showing strong momentum.
Revenue is also likely to include one month integration of Target,
two months of Pininfarina and three months of BIO. Together, the
acquisitions are expected to add to 1.6pp; 1.5pp is expected from
organic growth.
We expect EBITDA margin to decline by 50bp to 14.4%. Margins are
expected to be weighed upon by restructuring in LCC, and also by
depreciation of the GBP.
Consequently, we expect PAT to decline 5.7% QoQ, to INR6.2b in
2QFY17, also led by lower other income.
The stock trades at 13.1x FY17E and 11.2x FY18E earnings.
Neutral.
Key issues to watch for
Performance of the Telecom segment.
Comments on profitability including LCC.
TCV of deal wins in the Enterprise segment.
(INR m)
FY17E
4,294
6.4
290,004
9.5
29.6
14.3
15.2
12.1
4,375
1,268
24.1
27,555
-11.6
32.1
105,235
78.6
35.8
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
EBIT Margin (%)
Other income
Interest expense
ETR (%)
PAT excl. BT amort & EOI
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util excl. trainees (%)
Attrition (%)
Offshore rev. (%)
E: MOSL Estimates
1Q
989
0.5
62,938
22.9
29.4
14.4
15.0
12.3
1,366
214
23.7
6,762
43.3
7.2
7.6
103,673
74.0
19.0
39.0
FY16
2Q
3Q
1,011
1,015
2.2
0.4
66,155
67,011
20.5
16.5
32.0
31.3
15.4
14.3
16.6
16.9
13.7
14.4
1,658
639
173
244
24.8
23.2
7,855
7,592
16.2
-3.3
9.2
-2.3
8.8
8.5
105,235 107,137
77.0
77.0
20.0
20.0
38.3
37.3
4Q
1,023
0.8
68,837
12.5
30.6
13.7
16.9
13.7
1,659
330
14.6
8,971
18.2
90.1
10.1
105,432
77.0
21.0
36.8
1Q
1,032
0.9
69,209
10.0
29.5
14.6
14.9
12.0
1,519
274
25.9
6,561
-23.5
5.4
7.4
107,216
78.0
21.0
36.6
FY17E
FY16
2QE
3QE
4QE
1,057
1,085
1,120
4,037
2.5
2.7
3.2
10.2
70,828 73,813 76,154 264,941
7.1
10.2
10.6
17.9
29.5
30.2
29.0
30.8
15.1
14.3
13.4
14.5
14.4
15.9
15.6
16.4
11.4
12.9
12.2
13.5
877
1,110
868
5,322
349
331
313
961
23.5
23.5
23.5
21.4
6,184
7,552
7,257 31,180
-5.7
22.1
-3.9
-21.3
-0.5
-15.4
20.0
7.0
8.5
8.2
35.1
109,756 110,947 113,858 103,673
79.0
78.8
78.8
76.2
36.1
35.6
35.0
37.8
October 2016
17

September 2016 Results Preview | Sector: Technology
Wipro
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yld (%)
13.6
2.9
9.9
2.5
13.3
2.5
9.8
1.3
14.0
2.4
9.4
2.7
12.0
2.1
7.6
2.7
2015
469.5
104.6
86.6
35.1
10.9
166.1
23.0
20.2
34.2
2016 2017E 2018E
512.4
108.1
88.9
36.1
2.9
189.7
20.3
16.7
16.6
555.3
110.7
84.2
34.2
-5.4
199.3
17.6
14.7
37.4
614.7
129.8
97.1
40.1
17.3
227.1
18.7
16.7
32.5
WPRO IN
2466.0
1180 / 18
613 / 470
0 / -27 / -28
CMP: INR 479
TP: INR570 (+19%)
Neutral
We expect revenue to decline by 0.5% in USD terms, and growth of
0.1% QoQ in constant currency terms; a negative impact of 60bp on
account of depreciation of currencies against the USD.
In 1Q, WPRO had guided for 0-1% QoQ growth in 2Q. However,
given the macroeconomic environment, uncertainties surrounding
the BFSI vertical, and continued weakness in Energy, we expect
revenue growth to land up near the lower end of the range.
We expect EBIT margin in IT Services to decline by 120bp because
of the full impact of wage hikes, and increased investments.
We expect overall EBIT margin to decline by 40bp because of
improved profitability in the Products business.
Our PAT estimate is INR20.1b, -1.8% QoQ, on account of lower
margins compared to the previous quarter.
The stock trades at 14x FY17E and 12x FY18E earnings.
Neutral.
Key issues to watch for
Revenue growth guidance for 3QFY17.
Stabilization of the Energy vertical.
Commentary on large deal wins and ramp-up schedule.
(INR m)
FY17E
7,802
6.2
555,267
8.4
28.7
12.2
19.9
17.7
16.5
17,719
22.9
84,153
-5.4
34.2
181,998
76.4
45.8
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
QoQ (%)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
IT Serv. EBIT (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util excl. trainees (%)
Attrition (%)
Offshore rev. (%)
Rev Guidance (USDm)
Fixed Price (%)
E: MOSL Estimates
1Q
1,794
1.1
122,376
0.8
9.9
30.7
12.2
21.3
21.0
18.5
5,286
21.2
21,877
-3.8
4.0
8.9
161,789
81.9
16.4
45.4
1821-1857
54.5
FY16
2Q
3Q
4Q
1,832
1,838
1,882
2.1
0.3
2.4
125,135
128,605
136,324
2.3
2.8
6.0
7.1
7.2
12.3
31.4
29.8
29.7
12.4
12.0
12.3
21.8
20.8
20.6
20.7
20.2
20.1
19.0
17.9
17.4
5,138
5,715
5,426
22.4
21.8
22.7
22,354
22,341
22,350
2.2
-0.1
0.0
7.2
1.9
-1.8
9.1
9.1
9.1
168,396
170,664
172,912
82.3
78.0
77.5
16.4
16.3
16.1
46.1
46.2
45.8
1841-1878 1875-1912 1901-1939
53.4
55.9
56.9
1Q
1,931
2.6
135,992
-0.2
11.1
29.1
13.0
19.5
17.8
16.1
4,848
22.9
20,518
-8.2
-6.2
8.3
173,863
79.7
16.5
45.6
1931-1950
56
FY17
2QE
3QE
4QE
1,922
1,953
1,996
-0.5
1.6
2.2
135,759 139,973 143,544
-0.2
3.1
2.6
8.5
8.8
5.3
27.9
28.7
29.0
12.2
11.8
11.7
19.1
20.3
20.7
16.6
17.9
18.4
15.7
17.0
17.3
4,895
4,150
3,827
22.9
22.9
22.9
20,139 21,421
22,075
-1.8
6.4
3.1
-9.9
-4.1
-1.2
8.3
8.8
9.1
173,728 177,613 181,998
79.7
79.7
79.7
46.0
45.8
45.7
FY16
7,346
3.7
512,440
9.1
30.4
12.2
21.1
20.5
18.2
21,565
22.1
88,922
2.7
36.1
172,912
74.9
45.9
October 2016
18

September 2016 Results Preview | Sector: Technology
Zensar Technologies
Bloomberg
Equity Shares (m)
M. Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel Perf. (%)
Financial Snapshot (INR b)
Y/E MAR
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yld (%)
15.9
3.4
11.8
2.1
14.8
3.2
10.2
1.2
13.3
2.7
8.5
1.7
10.3
2.3
6.1
2.0
2015
469.5
104.6
86.6
35.1
10.9
23.0
20.2
34.2
2016 2017E 2018E
29.6
4.3
3.1
68.2
17.0
24.0
28.5
17.6
31.9
4.7
3.4
75.7
10.5
22.0
26.6
22.6
37.0
6.1
4.4
98.2
29.6
24.0
29.4
21.1
ZENT IN
45.4
46 / 1
1136 / 801
-2 / -6 / 14
CMP: INR 1,010
TP: INR1,300 (+29%)
Buy
We expect revenue of USD117m, representing growth of 2.8%. We
expect revenue growth to be a function of momentum in top
accounts, contribution of new deals and traction in Digital on the
positive side; and continued pruning of non-core accounts and
products/MVS business in Infrastructure Management on the
negative.
Despite the pruning of non-core/low-yield business, we expect
EBITDA margin to decline by 50bp QoQ because of wage hikes, and
the requirement of investments to boost capabilities and to
augment sales and marketing.
Post this, we expect margin expansion in the remainder of the year.
Our PAT estimate is INR726m, -4.9% QoQ, on account of lower
margins and lower forex gain compared to the previous quarter.
The stock trades at 13.3x FY17E and 10.3x FY18E earnings.
Buy.
166.1 314.4 371.7 445.6
Key issues to watch for
Traction in Digital, large deals and other new initiatives.
Margin outlook given the need for reinvestment.
Progress on restructuring.
(INR m)
FY17E
473
4.3
31,886
7.6
30.1
15.3
4,709
14.8
13.3
706
28.6
3,418
10.5
75.7
8,338
81.5
31.1
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Utilization (%)
Offshore rev. (%)
1Q
111
5.1
7,046
16.5
31.7
16.4
1,080
15.3
13.8
148
29.8
762
6.2
36.3
17.6
7,895
79.0
35.0
FY16
2Q
116
4.8
7,564
16.8
32.1
16.6
1,171
15.5
14.0
229
26.9
913
19.8
35.7
20.6
8,050
80.0
37.0
3Q
115
-1.4
7,568
5.5
30.6
16.2
1,089
14.4
12.9
95
30.4
715
-21.7
2.9
15.8
8,192
82.0
34.0
4Q
111
-3.7
7,464
13.5
30.8
18.5
922
12.4
10.7
116
21.1
703
-1.7
-2.1
15.5
8,256
81.0
36.0
1Q
114
3.1
7,624
8.2
29.1
15.3
1,053
13.8
12.5
169
30.5
763
8.5
0.1
16.9
8,238
79.8
31.2
FY17
2QE
117
2.8
7,851
3.8
28.8
15.5
1,047
13.3
11.8
128
28.0
726
-4.9
-20.6
16.1
8,238
82.0
31.4
FY16
3QE
119
1.5
8,085
6.8
30.2
15.0
1,233
15.2
13.7
243
28.0
941
29.7
31.6
20.9
8,288
82.0
31.0
4QE
122
3.0
8,326
11.5
32.0
15.5
1,376
16.5
15.0
166
28.0
988
4.9
40.5
21.9
8,338
82.0