Tech Mahindra posted muted set of numbers for 4QFY2017. For the quarter,
sales came in at US$1,131mn v/s 1,129mn expected, registering a qoq growth of
1.3%. In Rupee terms, the sales came in at `7,495cr v/s `7,533cr expected, a
qoq de-growth of 0.8%. In Constant Currency (CC) terms, the company posted a
0.9% qoq growth during the quarter. On, the operating front, a 4.2% qoq rise in
the cost of revenues resulted in the EBDITA and EBIT margins coming at 12.0%
and 8.2% v/s 15.5% and 12.2% expected respectively, qoq dip of 371 bps and
421 bps. Thus, the Adj. net profit came in at `588cr v/s `741cr expected, qoq
dip of 30.4%. We maintain our Buy rating on the stock.

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