Edelweiss Wealth Research

Tech Mahindra Ltd.

Sushil Sharma
Research Analyst
SushilK.Sharma@edelweissfin.com Date: September 22, 2021
 Tech Mahindra Ltd Telecom turnaround to accelerate growth

 Tech Mahindra (TECHM), part of the Mahindra group, is one of India’s top-5 IT services Sushil Sharma
companies. Digitalization driven strong demand should sustain Enterprise segment’s Research Analyst
(ES) strong growth. While Communications segment (CS) was a laggard, 5G deals SushilK.Sharma@edelweissfin.com
momentum is picking up. This should enable quicker growth recovery in CS.
 Hence, we expect TECHM to deliver 13% revenue CAGR over FY21-23E. Improved
execution engine for managing costs, targeting large deals, talent management, and
cash conversion should help margins and further reduce finance cost, resulting in 17%
PAT CAGR over the same period. CMP INR: 1,460
 Further, TECHM’s R&D lab (Makers Lab) along with partners has applied for Covid-19 Rating: Tactical BUY
drug patent, which will undergo trials and development process over the next ~1.5 Target Price: INR 1670
years. If successful, earnings upside may flow in from FY24E.
 The stock is trading at 22.1x FY23E EPS. Recommend ‘Tactical Buy’ with a target price Upside: 14%
of INR1,670.

Strategy has stabilised and paying off; focus on operations and organisation
TECHM’s strategy is built around services/offerings. This enables platform-driven
cloudification for digital transformation, which is now paying off. The company’s deal- win Bloomberg: TECHM:IN
value increased to USD2.2bn in FY21 (v/s USD3.7bn in FY20 and USD1.7bn in FY19) and
52-week
OPM expanded to 14.2% in FY21 (expected to further expand in FY22). To sustain growth 709 / 1493
range (INR):
recovery, the company is ramping up its execution engine by prioritising talent re-skilling,
large deals, project deliveries, targeted M&As and better collections. Share in issue (mn): 886

Growth set to accelerate M cap (INR mn): 1,40,800

Enterprise segment (ES) is TECHM’s main growth driver, delivering 9.7% revenue CAGR over Promoter
FY16-21 (growth comparable with peers Infosys and TCS). Over the same period, Telecom 35.73
Holding (%)
(part of Communications segment, CS) revenue CAGR declined to 0.7%. However, we
believe CS will increasingly come into play as 5G matures.

 Enterprise segment’s (60% of revenues, includes all verticals except Communications)

growth should sustain as (a) ES is contributing majority of the deal wins, and (b) 75-80%
acquisitions are feeding ES.
 Communications segment (40% of revenues) is turning around, which we believe will
accelerate further as deal wins suggest gradual ending of the disconnect (between 5G
OEMs reporting more and more deals but IT service providers not witnessing sustained
major deals).
Potential real option from R&D (under TECHM’s Makers Lab R&D hub)
TECHM has filed for a Covid-19 drug patent along with Bengaluru-based Reagene
Biosciences. Trials are expected to start in 3-4 months and the whole development process
may take up to ~1.5years. Management believes Makers Lab output may influence
revenues of USD1bn in the coming years.

Recommend ‘Tactical Buy’ with target price of INR1,670

The stock is currently trading at 22.1x FY23E EPS. Aided by Digital led strong demand and
uptick in 5G deals, we expect TECHM to deliver 13% revenue CAGR over FY21-23E. Improved
execution engine for targeting large deals, managing costs, and receivables should garner
17% PAT CAGR over the same period. Hence, we rate the company ‘Tactical Buy’ with target
price of INR1,670.
(INR mn) FY20A FY21 FY22E FY23E
Revenue (INR) 3,68,677 3,78,551 4,22,601 4,71,282
Revenue Growth (%) 6.1% 2.7% 11.6% 11.5%
EBITDA 57,261 68,470 81,029 88,394
EBITDA Margin (%) 15.5% 18.1% 19.2% 18.8%
EPS 46 50 61 66
Diluted P/E (x) 36.1 31.8 28.8 22.1
EV/EBITDA (x) 22.7 19.0 16.1 14.7 Date: September 22, 2021
RoE (%) 19.2 19 20.2 19.1

Edelweiss Wealth Research 1

 Tech Mahindra Ltd Index

Table of Contents
Page No.

Focus Charts ............................................................................................................................................................... 3

I. Growth strategy aligned with digitalisation demand .............................................................................................. 4

II. Communication segment turning around aided by 5G uptick ................................................................................ 6

III. Sustainable margins driven by operational efficiency initiatives .......................................................................... 9

Outlook and Valuation ................................................................................................................................................ 12

Financials ..................................................................................................................................................................... 13

Edelweiss Wealth Research 2

 Tech Mahindra Ltd Focus Charts

Story in a Nutshell

Exhibit 1: Revenue and margin improving Exhibit 2: Enterprise segment’s main growth driver
8,000 20% 10%
7,000 6,546 8%
5,845
6,000 5,182 5,111 16% 6%
USD mn

4,771 4,971
5,000 4,351 4%
4,000 12% 2%
3,000 0%
TECHM Telecom Enterprise Infosys TCS
2,000 8% -2%
Segment segment
FY17 FY18 FY19 FY20 FY21 FY22E FY23E 5yr CAGR (FY16-21) 3yr CAGR (FY18-21) 2yr CAGR (FY19-21)
Revenues (LHS) OPM (RHS)

Exhibit 3: Communication segment’s share in deal wins Exhibit 4: …leading to pick-up in the segment’s revenue
higher than its share in revenues… growth, which is likely to sustain
60% 43%
15% 600
42%
50% 10% 560
41%

(USD mn)
5%
40% 40% 520
0%
39%
30% -5% 480
38%
20% 37% -10% 440

Dec-20
Jun-19

Dec-19

Jun-20

Jun-21
Sep-19

Sep-20
Mar-20

Mar-21
Jun-19

Dec-19

Jun-20

Dec-20

Jun-21
Sep-19

Sep-20
Mar-20

Mar-21

Deal wins share, LTM (LHS) Revenue share (RHS) QoQ (LHS) YoY (LHS)

Exhibit 5: Valuation multiples mostly track revenue growth, so P/E (x) may sustain

25 30%

25%

20 20%

15%
(X)

15 10%

5%

10 0%

-5%

5 -10%
Jul-17
Apr-15
Jul-15
Oct-15

Jul-16
Oct-16

Oct-17

Jul-18
Oct-18

Jul-19
Oct-19

Jul-20
Oct-20

Jul-21
Apr-16

Apr-17

Apr-18

Apr-19

Apr-20

Apr-21
Jan-16
Jan-15

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

1yr forward P/E (LHS) Revenue growth YoY (RHS)

Source: Edelweiss Wealth Research

Edelweiss Wealth Research 3

Tech Mahindra Ltd Investment Hypothesis

I. Growth strategy aligned with digitalisation demand

TECHM is already seeing traction from its ‘NXT.Now’ strategy. It is aimed at enterprises to run their
IT systems better and change and grow their business faster by using TECHM’s tools/offerings kit
around four big bets – (a) cloudification, (b) platforms, (c) business efficiency, and (d) user
experience.

To fully exploit ‘NXT.Now’ strategy, TECHM is focused on sustainable execution that have the
following elements:
● Delivery and priority areas – right-sizing high potential geographies, embedding artificial
intelligence (AI) tools in delivery platforms, and right-sizing the employee pyramid,
● Account managers to be empowered client partners for digital sales capability and client
specific innovation,
● Focus on six key industry verticals along with seven key service lines that includes 5G, cloud
and analytics, cyber security, engineering services, business process services, and marketing
office functions.

Exhibit 6: Expect double-digit growth over FY22-23E…

Source: Company Data, Edelweiss Wealth Research *CME (Communications, Media & Entertainment)

As a result of ‘NXT.Now’ strategy’s successful execution, TECHM is seeing growth strengthen.

Further, revenue growth recovery is expected to sustain as the Communication segment (includes
Communications, Media & Entertainment industry i.e., CME) is turning the corner and aiding the
Enterprise segment (includes all industry verticals except CME), thus, boosting overall growth.

Exhibit 8: …as quarterly growth is showing sustained

Exhibit 7: Expect double-digit growth over FY22-23E…
recovery
8,000 16% 15% 1,400
6,546
7,000 12% 10% 1,350
5,845
(USD mn)

6,000 5% 1,300
5,182 5,111
(USD mn)

8%
4,771 4,971 0% 1,250
5,000 4,351
4% -5% 1,200
4,000
0% -10% 1,150
3,000
Jun-19

Dec-19

Jun-20

Dec-20

Jun-21
Sep-19

Sep-20
Mar-20

Mar-21

2,000 -4%
FY17 FY18 FY19 FY20 FY21 FY22E FY23E
Revenues (LHS) Growth (RHS) QoQ (LHS) YoY (LHS) Revenues (RHS)

Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 4

Tech Mahindra Ltd Investment Hypothesis

Exhibit 9: According to last 12 months (LTM) data for each quarter (to smoothen quarterly
volatility), deal wins growth is directly feeding into revenue growth. Since demand scenario is
robust, deal wins, and hence, growth recovery should sustain…

60% 4%

3%
40%

2%
20%
1%
0%
0%

-20%
-1%

-40% -2%
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21

Deal wins LTM, growth (LHS) Revenue LTM, growth (RHS)

Source: Company Data, Edelweiss Wealth Research

Exhibit 10: …deal wins balanced between Communication and Enterprise segments...

1600
1400
1200
1000
(USD mn)

800
600
400
200
0
Dec-19
Jun-18

Dec-18

Jun-19

Jun-20

Dec-20

Jun-21
Sep-18

Sep-19

Sep-20
Mar-19

Mar-20

Mar-21
Communications Enterprise Total Value

Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 5

Tech Mahindra Ltd Investment Hypothesis

II. Communication segment turning around aided by 5G uptick

While TECHM’s Enterprise segment’s performance was in line with peers, overall growth was being
dragged by the Communications segment. With Telecom original equipment makers (OEMs)
reporting more and more 5G deals with Telecom service providers (TSPs) and IT service providers
(like TECHM) to TSPs not witnessing sustained major deals, there is a disconnect. However, we this
disconnect would gradually disappear in the future.

Exhibit 11: Enterprise segment’s growth comparable

Exhibit 12: Overall growth dragged by Telecom
with peers
12%
17.2% 19.1%
10%

8%
8.0%
6% 5.2%
3.6%
0.6%
4%

2% -0.9% -0.7% -0.8%

-4.1%
0%
TECHM Telecom Enterprise Infosys TCS
-2% FY17 FY18 FY19 FY20 FY21
Segment segment
Communications Enterprise
5yr CAGR (FY16-21) 3yr CAGR (FY18-21) 2yr CAGR (FY19-21)
Source: Company, Edelweiss Wealth Research

Exhibit 13: However, Communications is showing definite signs of a turnaround. We believe this
will gain further strength as Telecom service providers (if not enterprises) are adopting 5G at a
quicker pace...

15% 600

10%
560

(USD mn)
5%
520
0%

480
-5%

-10% 440
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21

QoQ YoY Revenues (RHS)

Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 6

Tech Mahindra Ltd Investment Hypothesis

Exhibit 14: 5G deals have shot up over last two years… Exhibit 15: ...and balance is shifting in favour of 5G (v/s 4G)

200 6.0 6.0

5.7 5.9 5.7
180 175 5.5
160
140 143
120

USD Billions
100
3.0
80
65 2.4
60
1.8
40 40
30 1.0
20 18 0.6
0 0.2
Jan-19 Jan-20 Jan-21
Ericsson Nokia Huawei 2020 2021 2022 2023 2024 2025
4G 5G

Source: Company Data, Edelweiss Wealth Research. Omdia and 5G Americas, Sep 23, 3030

Over 2020-25, telecom network management services market is expected to move towards
network service 3.0, which is based on open architecture, is cloud native and AI driven. Therefore,
TECHM is positioning itself as a continuous integrator rather than a network system integrator.
Though 5G implementation has been delayed, Communication Service Providers (CSPs) are
spending on improving network management to cater to the higher data demand owing to
remote working/access. TECHM has developed products like netOps.ai (AI driven network
operation platform) and GAiA to reposition itself.

Exhibit 16: 5G deals have shot up over last two years

Source: Company, Edelweiss Wealth Research

Edelweiss Wealth Research 7

Tech Mahindra Ltd Investment Hypothesis

Exhibit 17: 5G spending in other parts of the ecosystem should reflect in TECHM’s
Communication segment deal wins in CY22 (which is already up after dip in CY20)…

1,200 2,500

1,000
2,000

800

(USD mn)
1,500
(USD mn)

600
1,000
400

500
200

- -
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21

Deal wins (LHS) Deal wins, LTM (RHS)

Source: Company Data, Edelweiss Wealth Research

Exhibit 18: …thus, we believe Communication segment’s recovery is sustainable...

20% 840

15%
800

10%
760

(USD mn)
5%
720
0%

680
-5%

-10% 640
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21

QoQ (%) YoY (%) Revenues (US$ mn, RHS)

Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 8

Tech Mahindra Ltd Investment Hypothesis

III. Sustainable margins driven by operational efficiency initiatives

Operating margins are expected to expand to 15.8% in FY22 (v/s 14.2% in FY21), as TECHM
embarked on cost-focused operational efficiency initiatives in H2CY20. The company (a) deployed
~100 data analysts to comb through each line item for cost savings, (b) redesigned work processes
and structure for greater efficiency, and (c) integrated portfolio companies’ back-office and front-
office through shared services. These measures are now showing results, and therefore, past
volatility in margins is expected to subside.

Exhibit 19: Margins have improved; TECHM’s efforts towards achieving operational efficiency
should mitigate past margin volatility
16%

14%

12%

10%

8%
FY17 FY18 FY19 FY20 FY21 FY22E FY23E
OPM NPM

Source: Company Data, Edelweiss Wealth Research

Exhibit 20: Declining DSOs show operational efficiency efforts leading to improvement in quality
of growth
106 107
99
93

87

77
73 75

67
62

FY17 FY18 FY19 FY20 FY21

DSO DSO including Unbilled

Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 9

Tech Mahindra Ltd Investment Hypothesis

Exhibit 21: Stronger growth, better margins and improved operational efficiency has resulted in
higher Free Cash Flows (FCF) and better cash conversion (FCF to PAT ratio) …
80,000 180%
162%
160%
60,000
140%
(INR MN)
40,000 120%

92% 100%
95% 87%
20,000
73% 80%

0 60%
FY17 FY18 FY19 FY20 FY21

FCF (LHS) FCF/PAT (RHS)

Source: Company Data, Edelweiss Wealth Research

Exhibit 22: …enabling the company to increase shareholder pay out (reached 90% in FY21) …
60 90% 100%
76% 90%
50 45 80%
40 35 70%
60%
(INR)

30 50%
33% 29% 40%
28%
20 30%
14 14
9 20%
10
10%
0 0%
FY17 FY18 FY19 FY20 FY21

EPS (LHS) DPS (LHS) Payout Ratio (RHS)

Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 10

 Tech Mahindra Ltd Investment Hypothesis

Exhibit 23: …without compromising on acquisitions/investments. TECHM completed acquisitions worth USD227mn in YTD
CY21
Date Acquired assets Competency area Value (USD mn)
Jun’21 Brainscale, USA Cloud transformation related IT services 29
Apr’21 Eventus Solutions, USA Business Process Services 44
Apr’21 DigitalOnUs, USA Cloud native & hybrid cloud automation 120
Mar’21 Perigord Asset Holding, Ireland Packaging supply chain solutions 25
Jan’21 Payments Technology Solutions Will give access to 2 IP's/products for Payments 9
Oct’20 Momentum Pty, Australia Cloud & engineering services with BFSI focus 10
Oct’20 Tenzing Group, New Zealand IT services in Insurance in ANZ region 29
Oct’20 VitalTech, Texas, US IT services in Health care 3
Feb’20 Zen3 Infosolutions (America) Inc. AI, machine learnings and Cloud 64
Jan’20 Cerium Systems Private Limited. VLSI and design systems 35
Nov’19 Born Group Pte Ltd. Digital content and production 95
Aug’19 MAD Pow Media Solutions LLC Experience and strategic design services 17
Jul’19 Objectwise Consulting Group Inc PEGA software implementation 2
May’19 Altiostar Networks Inc Open vRAN 114
Apr’19 Vitaran Electronics RFID-based asset monitoring 18
Mar’19 K-Vision Co Ltd Japan-based mobile network solutions 2
Feb’19 Dynacommerce Holding BV Customer experience 5
Sep’18 Inter-Informatics spol sro ER&D in Aero, rail, and Machinery 12
Jun’18 Tradeix Ltd Open platform for trade finance 16
Sep’17 Emagine International Pty Ltd
Jul’17 Pininfarina SpA Italy-based automotive design 9
May’17 CJS Solutions Group LLC/The 90
Jun’16 Bio Agency Digital, customer experience design 66
May’16 Target Group Financial services outsourcing 164
Jan’16 Advanced technology solutions
Dec’15 Pininfarina SpA Auto/Industrial Design 94
Jan’15 SOFGEN Holdings Ltd Geneva based consulting services in BFSI space 30
Nov’14 Lightbridge Communications Corp Network management services 240
Apr’14 FixStream Networks Inc Analytics 10
Source: Company Data, Edelweiss Wealth Research

Edelweiss Wealth Research 11

 Tech Mahindra Ltd Outlook and Valuation

IV. Recommend ‘Tactical BUY’ with target price of INR1,670 (14% upside
potential)

At CMP of INR1,460, the stock is valued at 22.1x FY23E EPS. Aided by strong demand environment
and greater uptick in 5G deals, we expect TECHM’s growth recovery to strengthen and sustain,
leading to 13% revenue CAGR over FY21-23E. Operating leverage of growth along with an improved
execution engine (to manage costs, target large deals, talent management, and receivables) should
help margins and further reduce finance cost, resulting in 17% PAT CAGR over FY21-23E. Hence, we
recommend ‘Tactical BUY’ on the stock with a target price of INR1,670/share.

We have not factored in any real option value from some R&D activities like the Covid-19 drug
discovery (TECHM has filed patent along with Bengaluru-based Reagene Biosciences). Trials are
expected to start in 3-4 months and the whole development process may take up to ~1.5years.

Exhibit 24: Return ratios have bottomed out in FY20

25 30%

25%

20 20%

15%
(X)

15 10%

5%

10 0%

-5%

5 -10%
Jul-17
Apr-15
Jul-15
Oct-15

Jul-16
Oct-16

Oct-17

Jul-18
Oct-18

Jul-19
Oct-19

Jul-20
Oct-20

Jul-21
Apr-16

Apr-17

Apr-18

Apr-19

Apr-20

Apr-21
Jan-16
Jan-15

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21
1yr forward P/E (LHS) Revenue growth YoY (RHS)

Source: Company, Edelweiss Wealth Research

Exhibit 25: TECHM’s valuation reasonable in broad-based demand upcycle

Mcap Revenue (INR mn) PAT (INR mn) P/E (x)
(INR mn) FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY21 FY22 FY23
TCS 1,41,69,000 15,69,490 16,41,770 18,58,274 20,26,186 3,24,470 3,42,850 3,90,945 4,38,636 41.3 36.2 32.3
Infosys 71,74,000 9,07,910 10,04,720 11,81,017 13,54,005 1,66,390 1,94,230 2,37,443 2,68,692 36.9 30.2 26.7
HCLT 34,31,000 706760.00 7,53,790 8,46,686 9,36,736 1,10,570 1,11,690 1,39,801 1,69,915 30.7 24.5 20.2
Wipro 36,31,000 6,10,151 6,20,574 6,75,588 7,26,583 97,718 1,08,680 1,23,459 1,28,350 33.4 29.4 28.3
TECHM 14,08,000 3,68,677 3,78,551 4,06,821 4,41,352 40,330 44,280 48,856 55,013 31.8 28.8 22.1
Source: Company, Edelweiss Wealth Research

Edelweiss Wealth Research 12

Tech Mahindra Ltd Financials

Income Statement (INR mn)

Year to March FY20A FY21 FY22E FY23E
Total operating income 3,68,677 3,78,551 4,22,601 4,71,282
Gross profit 1,08,934 1,19,996 1,36,121 1,49,661
Employee costs 0 0 0 0
Other expenses 0 0 0 0
EBITDA 57,261 68,470 81,029 88,394
Depreciation 16,633 15,084 15,596 17,437
Less: Interest expense 1,919 1,740 3,897 4,688
Add: Other income 11,924 7,871 8,930 9,410
Profit before tax 50,633 59,517 70,466 75,678
Prov for tax 11,604 15,999 17,416 18,163
Less: Other adjustment 0 0 0 0
Reported profit 40,385 44,268 53,800 58,266
Less: Excp.item (net) 0 0 0 0
Adjusted profit 40,385 44,268 53,800 58,266
Diluted shares o/s 884 880 885 886
Adjusted diluted EPS 46 50 61 66
DPS (INR) 17 17 17 17
Tax rate (%) 22.9 26.9 24.7 24

Important Ratios (%)

Year to March FY20A FY21 FY22E FY23E
Cost of revenues (%) 70.5 68.3 67.8 68.2
SG&A expenses (%) 14 13.6 13 13
Depreciation (%) 4.5 4 3.7 3.7
EBITDA margin (%) 15.5 18.1 19.2 18.8
Net profit margin (%) 11 11.7 12.7 12.4
Revenue Growth (% YoY) 6.1 2.7 11.6 11.5
EBITDA growth (% YoY) -9.6 19.6 18.3 9.1
Adj. profit growth (%) -7.6 9.6 21.5 8.3

Valuation Metrics
Year to March FY20A FY21 FY22E FY23E
Diluted P/E (x) 36.1 31.8 28.8 22.1
Price/BV (x) 6.5 5.7 4.9 4.3
EV/EBITDA (x) 22.7 19.0 16.1 14.7
Dividend yield (%) 1.5 1.5 1.5 1.5

Edelweiss Wealth Research 13

Tech Mahindra Ltd Financials

Balance Sheet (INR mn)

Year to March FY20A FY21 FY22E FY23E
Share capital 4,359 4,370 4,370 4,370
Reserves 2,13,772 2,44,280 2,80,411 3,20,990
Shareholders funds 2,18,131 2,48,650 2,84,781 3,25,360
Minority interest 3,933 3,795 3,045 2,295
Borrowings 24,282 16,618 15,288 14,124
Trade payables 32,566 27,850 31,395 35,246
Other liabs & prov 54,196 59,965 65,962 72,558
Total liabilities 3,73,535 3,96,780 4,43,132 4,95,280
Net block 26,609 24,632 16,219 6,202
Intangible assets 60,667 64,662 66,937 69,212
Capital WIP 501 1,183 1,420 1,704
Total fixed assets 87,777 90,477 84,576 77,117
Non current inv 1,444 891 891 891
Cash/cash equivalent 86,290 1,23,523 1,72,528 2,32,739
Sundry debtors 75,772 64,728 78,731 87,800
Loans & advances 0 0 0 0
Other assets 1,22,252 1,17,161 1,06,407 96,732
Total assets 3,73,535 3,96,780 4,43,132 4,95,280

Free Cash Flow (INR mn)

Year to March FY20A FY21 FY22E FY23E
Reported profit 40,385 44,268 53,800 58,266
Add: Depreciation 16,633 15,084 15,596 17,437
Interest (net of tax) -42,060 -45,034 -92,421 -1,07,824
Others 32,172 50,985 86,637 1,02,352
Less: Changes in WC -17,521 15,635 9,053 14,088
Operating cash flow 29,609 80,938 72,665 84,319
Less: Capex -13,773 -17,065 -9,695 -9,979
Free cash flow 15,836 63,873 62,970 74,341

Valuation Drivers
Year to March FY20A FY21 FY22E FY23E
EPS growth (%) -6.4 10.1 20.9 8.2
RoE (%) 19.2 19 20.2 19.1
EBITDA growth (%) -9.6 19.6 18.3 9.1
Payout ratio (%) 37.3 33.9 28.1 25.9

Edelweiss Wealth Research 14

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Edelweiss Wealth Research 15

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Edelweiss Wealth Research 16

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Edelweiss Wealth Research 17