Tech Mahindra Q1 Preview: Revenue could fall by 0.8%, EBIT margin could rise by 30 barrels
According to Zee Business Research, IT major technology Mahindra is expected to fall 0.8% in the June quarter, as it is under pressure from continued weakness in its critical communications, media and technology (CMT) verticals.
Despite the possible softness, profit margins will still increase. Analysts estimate 30 basis points sequential expansion of the EBIT margin and are supported by ongoing cost optimization efforts.
However, trading momentum is expected to remain stable. The research team fixed net new deals to the $60 billion range, which is the continued appeal of key segments.
In the fourth quarter, Tech Mahindra reported revenue of Rs 133,94 crore, up 1% from Rs 133.84 crore a year ago. EBIT’s price was Rs 147.6 crore, up 5%, while EBIT profit margin rose from 10.5% to 10.8%. Adjusted PAT rose 4.4% to Rs 1,218 crore, with earnings per share (EPS) of Rs 13.9, up from Rs 13.2.
Key things to watch before the Tech Mahindra Q1:
Management Reviews Trends in Telecom and BFSI
Making progress in big deals
Update on margin improvement roadmap
Clarity of revenue and profit targets for fiscal 27 years
Tech Mahindra’s first-quarter figures will be carefully tracked in signs of recovery in growth and margin leverage due to a cautious demand environment for global IT spending.
