InvestorQ : Was the quarterly performance of Tech Mahindra at par with other IT stocks in the quarter?
Aditi Sharma made post
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Was the quarterly performance of Tech Mahindra at par with other IT stocks in the quarter?

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Dinesh C Nagpal answered.
2 years ago
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Technically, TECHM might remain range bound between 900-1000 for sometime. A clearer trend would be on a decisive break either side. As of now short term appears to be weak, dips till 875-850 would be a gr8 opportunity to go bullish again.
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Mahima Roy answered.
2 years ago
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Margins for Tech Mahindra have traditionally been lower than the top rung IT companies and that has continued in the latest quarter too. The Q3 PAT for the Dec-20 period was up 16.15% at Rs.1,290 crore despite absolutely flat sales revenues at around Rs.9,467 crore.

While the business process outsourcing or BPO business of Tech Mahindra picked up on a yoy basis, the core IT business took a hit with lower revenues in the quarter. Tech Mahindra has a major exposure to BFSI and telecom and that created pressure as the company did see some pressure on IT spending of corporate clients.

In terms of bottom line, the profit after tax or PAT for the Dec-20 quarter was up on the back of lower sub-contracting expenses incurred. As a result, the PAT margins also improved from 11.50% in Dec-19 to 13.37% in Dec-20, still lower than top run IT sector medians.

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