With a revenue growth of 7.2 % QoQ, Greyhound Research believes that it’s been a profitable quarter for Tech Mahindra, their growth has been up to industry standards and they have outperformed expectations. Tech Mahindra stock prices have already seen an increase of 1.08% and are likely to increase when the markets open tomorrow morning.
Tech Mahindra has shown a strong increase in their IT revenue with 6% owing to their significant multi million, multi-euro deal with Ahlstrom. The new deals in aerospace sector with Airbus Group and Bombardier are one of the key reasons that showcase an increase in their revenue. Tech Mahindra is increasingly targeting small ticket deals under 5 million USD – from 80 customers in the last quarter, the customer base has increased to 86.
It’s great to see that Tech Mahindra is investing into IoT. That said the market is still young and needs to be nurtured to fetch them the desired profits.
Tech Mahindra is the only company to have noted an increase in employee count with an addition of 2,580 employees.
The utilisation rate has increased from 72% to 76% from last quarter; however it’s still low as compared to industry standards.