Nifty earnings: Check Q4 Report Card and Analysts' reviews of L&T, DMart and Tech Mahindra

Q4 Combined Results
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Nifty earnings: Check Q4 Report Card and Analysts' reviews of L&T, DMart and Tech Mahindra

Tech Mahindra Q4 Earnings: Highlights

Profits: The net profit reported by the company for Q4FY22 was Rs 1,506 crore, up 39.2% YoY. It is higher than the Street estimate of Rs 1411 crore.

Revenue: The company reported revenue of Rs 12,116 crore, up 24.5% against Rs 9,730 crore in the year-ago period.

EBITDA: Consolidated earnings before interest and tax for Q4FY22 stood at Rs 1,604.2 crore as against Rs 1,697.9 crore in the year-ago period. It is lower than analysts' expectation of Rs 1,719 crore.

Margins: EBIT margin for Q4 shrank 160 basis points on quarter to 13.2% reflecting the impact of higher staffing costs.

Deal wins: Tech Mahindra reported net new deal wins worth more than $1 billion reflecting a strong demand environment.

Attrition rate: The attrition rate was stable at 24%, the same as the previous quarter.

Dividend: The board of the company has also recommended a final dividend of Rs 15 per share for the financial year ended March 31, 2022.

Management commentary: "Our structural profitability continues to be robust, and we look forward to continuing our journey with a commitment to the resilient capital return and operational efficiency backed by a comprehensive digital portfolio," said Milind Kulkarni, CFO, Tech Mahindra.

Analyst review: Tech Mahindra has reported robust broad-based Revenue growth. As per analysts, it is equipped to mitigate the cost headwinds for FY23. Morgan Stanley has kept an ‘overweight’ rating but cut the target price to Rs 1,650.

View detailed review of L&T Q4 here 

Avenue SuperMart(DMart) Q4 Results: Highlights

Revenue: The consolidated revenue increased by 18.53% YoY to Rs 8,786 crore for Q4FY22. Sequentially, the revenue was down 4.6% due to the rise in the Omicron variant in January 2022. 

Profits: The net profit reported by the company was Rs 420 crore, up 2.8% YoY. However, sequentially, the profit was down 22.8%.

EBITDA and margins: EBITDA stands at Rs 781.32 crore in Q4FY22, up 16.76% from Rs 669.16 crore in Q4FY21. EBITDA margin improved by 10 basis points to 8.4% from 8.3% YoY.   

EPS: Avenue Supermart EPS has increased to Rs 7.20 in March 2022 from Rs 6.71 in March 2021.

Store count: It opened 50 additional stores during the year (21 in Q4) taking its total to 284 stores. It is now present in 12 cities across the country. 

Management Commentary: "These waves typically hurt the high margin and discretionary items more. As is the trend of the past, recovery does take 40-50 days after restrictions are removed or anxiety of a Covid wave recedes. Omicron was a milder wave and hence had a significantly lower negative impact." CEO & Managing Director, Neville Noronha.

Motilal Oswal Financial Securities: The brokerage firm believes the company's strong growth footprint and cost optimization measures drove healthy EBITDA performance in Q4 despite the third wave. They are cognizant of the prominence of the new-age grocery model and its rich valuation. Hence, they have maintained a NEUTRAL rating with a target price of Rs 3,500 assigning 42x EV/EBITDA on an FY24E basis.

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