For 3QFY2017, Tech Mahindra posted results much better than expected on all
fronts. The company posted sales of US$1,116mn (US$1,091mn expected) v/s
US$1,072mn, a qoq growth of 4.1%. In Constant Currency (CC) terms, company
posted a 5.4% qoq growth. On EBIT front, the company posted EBIT of 12.4%
(12.1% expected) v/s 11.5% in 2QFY2016. The utilization levels improved to
83.0% v/s 82.0% in 2QFY2016. Consequently, PAT came in at Rs845cr (Rs733cr
expected) v/s Rs645cr in 2QFY2016, growth of 31.0% qoq. The growth in the net
profit was aided by the lower taxes during the quarter, which dipped 25.1% yoy.
We maintain our Buy rating on the stock.

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