Tech Mahindra is likely to report a 2.3 percent sequential growth in consolidated net revenue to Rs 11,129 crore for the quarter ended December, aided by its recent acquisitions, an average of estimates from five brokerages polled by Moneycontrol showed.
The IT services major reports its December quarter earnings on February 1.
Brokerage firm Kotak Institutional Equities expects recent acquisitions of Beris Consulting, Lodestone, and WMW to boost revenues by $11.8 million during the quarter.
Motilal Oswal Financial Services expects the information technology company to report a 3.7 percent sequential growth in topline in constant currency terms, driven by its communications and enterprise solutions verticals.
The Pune-based company is likely to report a 4.4 percent sequential growth in consolidated net profit to Rs 1,397.5 crore for the reporting quarter, the Moneycontrol poll found.
On the operating front, brokerages expect the strong topline growth to offset the impact of a higher wage growth in the quarter.
Analysts expect earnings before interest and tax to rise 10.5 percent to Rs 1,825 crore. The company’s operating margin is likely to expand by 10-24 basis points on-quarter to 18.4-18.6 percent, analysts said.
Besides the earnings, investors will wait for the management’s commentary on the 5G opportunity, attrition rate, deal momentum in the telecom vertical, and the ability to defend its 15 percent margin run-rate.