Tech Mahindra is the Sensex gainer and is up 8.31 per cent in trade.
Broking firm Prabhudas Lilladher said Tech Mahindra reported revenue of $1.5 billion, down 0.8 per cent QoQ in CC and 1.6 per cent below the consensus of 1.4 per cent decline. The decline was led by the communications vertical (-2.7 per cent QoQ) as well as continued initiatives to de-risk its customer mix.
Management created a three-year strategic plan to make the forecasted growth sustainable during FY25-FY27. The pillar of the growth strategy is to drive a balanced portfolio with less reliance on communications businesses while drawing more attention to high-growth service lines and scaling potential top accounts.
Management indicated that this is a long-term approach and will require investment in the initial phase. The brokerage said it expects FY2025 to be a year of transformation followed by stagnant performance in FY26, while real gains can be achieved only in FY27.
JM Financial Institutional Securities said Tech Mahindra's 4Q was softer than expected. “However, 4Q results are irrelevant now. The goal post for the company (and the stock) has clearly shifted to FY27. Management presented its three-year turnaround roadmap. Although implementation will define success, the plan looks strong on paper, at least to us. Importantly, the three-year plan indicates the long rope that the board has extended to the management team. Investors should do the same,” the brokerage said.
Broking firm Prabhudas Lilladher said Tech Mahindra reported revenue of $1.5 billion, down 0.8 per cent QoQ in CC and 1.6 per cent below the consensus of 1.4 per cent decline. The decline was led by the communications vertical (-2.7 per cent QoQ) as well as continued initiatives to de-risk its customer mix.
Management created a three-year strategic plan to make the forecasted growth sustainable during FY25-FY27. The pillar of the growth strategy is to drive a balanced portfolio with less reliance on communications businesses while drawing more attention to high-growth service lines and scaling potential top accounts.
Management indicated that this is a long-term approach and will require investment in the initial phase. The brokerage said it expects FY2025 to be a year of transformation followed by stagnant performance in FY26, while real gains can be achieved only in FY27.
JM Financial Institutional Securities said Tech Mahindra's 4Q was softer than expected. “However, 4Q results are irrelevant now. The goal post for the company (and the stock) has clearly shifted to FY27. Management presented its three-year turnaround roadmap. Although implementation will define success, the plan looks strong on paper, at least to us. Importantly, the three-year plan indicates the long rope that the board has extended to the management team. Investors should do the same,” the brokerage said.
