Tech Mahindra Q2 preview: PAT likely to climb 16% QoQ; margins may increase by 60 bps
As the communication business of the company has largely turned steady, recovery at Tech Mahindra is likely to take longer.
Pune-based IT services and consulting company is slated to announce its Q2 show tomorrow (October 19, 2024). Zee Business Research estimates the computer programming and consulting firm to post 16.2 per cent growth sequentially in consolidated PAT to Rs 990 crore as against Rs 852 crore recorded in the previous June quarter.
Revenue at the firm is anticipated to clock a 1 per cent growth to Rs 13,130 crore during the revenue period. The same was placed at Rs 13,006 crore in the previous June quarter.
The growth in revenue in dollar terms sequentially is estimated to be 0.5 per cent at Rs 156.7 crore as against Rs 155.9 crore. At the same time, the constant currency revenue growth is estimated to be 0.2 per cent sequentially.
Meanwhile, EBIT or earnings before interest and taxes is forecasted to be up by 8.8 per cent to Rs 1,200 crore in the review quarter. In the year-ago quarter, EBIT was recorded at Rs 1,103 crore.
Margins at the company are expected to inch higher by 60 bps to 9.1 per cent as against 8.5 per cent in the previous quarter.
Zee Business Research said that the company's communications vertical has stabilized and recovery could take longer.
Key monitorables
As per the Research team, the key watch-outs in Tech Mahindra Q2 for shareholders and other stakeholders are progress of the strategic initiatives by CEO Mohit Joshi, telecom vertical outlook, margins levers and discretionary spend outlook.
Tech Mahindra share price
Ahead of its results later tomorrow, shares of the IT company ended 0.65 per cent lower at Rs 1,687.9 per share. The stock over the last one year has zoomed 41 per cent while the Nifty IT index has risen by over 32 per cent.
Catch all the latest stock market updates here. For all other news stories in buzzing categories like technology, automobiles and personal finance, and much more, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Stocks to Buy for 15 Days: Axis Direct picks 5 stocks for up to 32% gains; check targets and other details
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
10:42 AM IST