homeearnings NewsTech Mahindra Q1 Preview: Dollar revenue likely to decline by 1.65%, profit may remain flat
Tech Mahindra Q1 Preview: Dollar revenue likely to decline by 1.65%, profit may remain flat
According to a CNBC-TV18 poll, the dollar revenue is expected to decline by 1.65 percent and is projected to be at $1,640.4 million. Moreover, the constant currency revenue growth is anticipated to decrease by 1.8-2 percent sequentially. The management's commentary on the margin outlook will hold significance for the company's stock in the future
Tech Mahindra, the information technology firm, is set to announce its earnings for the quarter ending June 2023 on Wednesday (July 26).
According to a CNBC-TV18 Poll, the dollar revenue is expected to decline by 1.65 percent and is projected to be $1,640.4 million, compared to the previous quarter's reported revenue of $1,668 million. Moreover, the constant currency revenue growth is anticipated to decrease by 1.8-2 percent sequentially.
On a positive note, there is a possibility of an increase in EBIT margin to 10.5 percent, as opposed to the 9.6 percent reported in the previous quarter. It is important to note that the company's fourth quarter in in FY23 margin was affected by the impairment of goodwill and non-current assets of Rs 212.6 crore.
However, the adjusted margin is expected to decline to 10.5 percent from the previous quarter's 11.2 percent. Additionally, the profit after tax (PAT) is projected to remain flat at Rs 1,123.5 crore, almost the same as the Rs 1,117.7 crore reported in the fourth quarter of FY23.
The management's commentary on the margin outlook will hold significance for the company's stock in the future.
In 2023, the Tech Mahindra stock underwent a significant re-rating after announcing Mohit Joshi as its new CEO. Despite the prevailing IT industry challenges, the stock reached a fresh 52-week high at one point.
However, when Infosys reported its Q1FY24 numbers, Tech Mahindra's stock experienced a sharp decline. As a result, the stock underwent a correction of approximately 9 percent from its 52-week high of Rs 1,270, concluding Tuesday's trading session at Rs 1,156.45 per share.
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