Technology

Tech Mahindra posted in-line results for 2QFY2018 on all fronts except net profit. In Rupee terms, revenues came in at `7,606cr v/s. `7,582cr expected, up 3.7% qoq. On the operating front, the utilization levels during the quarter came in at 81% v/s. 77% in 1QFY2018, which along with volume also aided the margins to come in higher. On the operating front, the EBITDA margin, came in at 14.5% (14.0% expected) v/s. 12.7% in 1QFY2018, a qoq expansion of 50bps. Consequently, PAT came in at `839cr v/s. `886cr expected, a growth of 6.0% qoq. We maintain our Accumulate rating, with a Target Price of `526.

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