«So, I will just say that there are lot of things which are happening, lot of moving parts happening, lot of leadership change and all, so obviously weak set of numbers,» says Sandip Agarwal, Independent Market Expert.I do not remember the last time we saw a margin profile of around sub-7% for Tech Mahindra. Last year or in FY21, the EBIT margin number used to be well above 16%, now 6.8.Yes, so this is obviously a very weak set of numbers and as you rightly mentioned these things happen once in a decade type and we have seen this last quarter in one of the companies and then that company bounced back substantially in the margin and so the stock price.
So, I will just say that there are lot of things which are happening, lot of moving parts happening, lot of leadership change and all, so obviously weak set of numbers. There is no respite on any front from that and no way they can be called one-offs.
But I would just say that this thing provides an opportunity once in a decade kind of situation where we should look at it in the perspective that this could be the worst and worst is probably behind. So, with that perspective, one should look at the numbers.
Any which way, expectations were not high but the numbers are actually much poorer than the expectations also.But would you expect this to be a one-quarter issue because the weakness that we are seeing in high tech communication, it seems to be a bit more structural and not a one-quarter issue. Do you think it is a client, a segment-specific issue or it is going to be weak for Tech M before it gets better?No, you are absolutely right.
So, if you ask me from a perspective that will it be like other segments going forward, the answer is no. But will it recover from here?
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