Software services provider Tech Mahindra's second quarter profit after tax is seen rising 8.2 percent sequentially to Rs 732 crore, aided by strong operational performance. It will announce earnings on November 3.
According to analysts polled by CNBC-TV18, revenue is likely to increase 4.5 percent quarter-on-quarter to Rs 6,578 crore and dollar revenue may climb 2.1 percent to USD 1,010 million. Constant currency growth in dollar revenue may be around 2.7-2.8 percent, which may be relatively better after two soft quarters.
Dollar revenue may be supported by some growth in telecom vertical (on a low base in preceding quarter) and continued momentum in enterprise segment.
Analysts feel two recent acquisitions LCC (Lightbridge Communications Corporation) may show some sequential improvement and Comviva business may not be a headwind during the quarter, adding Comverse deal is likely to provide USD 8 million in revenue.
Earnings before interest and tax during the quarter may increase 19 percent to Rs 908 crore and margin may expand 170 basis points to 13.8 percent on sequential basis due to some improvement in utilisation, absence of visa costs, better margins in LCC and currency benefit.
Key things to watch out for would be update on margin trajectory for rest of the year, outlook of telecom business and deal wins.
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