February 09, 2017 / 12:18 IST
Q3FY17revenue at USD 1,116mn was higher (ours: USD 1,101 mn) driven by higher growth in BFSI (up 19% QoQ, 13% share) and Retail (up 16% QoQ, 8% share) among verticals and Rest of World (up 13% QoQ, 24% share) among geographies. Q2 had absorbed one-time restructuring; hence, Q3 margin is lower on a like-to-like basis. PAT was higher due to lower tax (prior period adjustment of Rs 900mn).
OutlookWe expect TechM to deliver 9% revenue CAGR over FY16-18 with EBITDA margin of 15/16% in FY17/18.Our FY17E/ FY18E EPS stands at Rs 33/ Rs 43. Our TP at Rs 472 (11x FY18E) implies limited upside from CMP of Rs 472. Maintain HOLD. The stock trades at 14x/11x FY17/18.
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