Tech Mahindra is expected to announce March quarter results on May 26. The IT company's net profit is likely to fall 11.4 percent to Rs 713 crore in fourth quarter of FY15 from Rs 805 crore in year-ago period. According to a CNBC-TV18 poll, dollar revenue is seen to be slightly higher by 7.7 percent at USD 996 million versus USD 924 million year-on-year driven by integration of Lightbridge Communications Corporation (LCC) and Sofgen acqusition in Q4.
In rupee terms, revenue is likely to be up 7.9 percent at Rs 6207 crore against Rs 5752 crore (Y-o-Y).
During the period, EBIT is seen at Rs 931 crore versus Rs 1016 crore while EBIT percent may come in at 15 percent from 17.6 percent on yearly basis.
Analysts polled by CNBC-TV18 say margins may be lower by 250 basis points (bps) impacted by wage hike, acquisitions and currency. This can be partly offset by operating efficiency. Street focus will be on deal pipeline and FY2016 growth, and levers to defend margins.
The company has hardly closed a large deal in telecom in last two quarters and that may result in muted growth over six months.
The stock closed at Rs 648.20, down Rs 17.05, or 2.56 percent on the BSE.
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