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Centrum Institutional Research expects Tech Mahindra to deliver constant currency revenue growth of 1.6 percent QoQ.
Net Sales are expected to decrease by 5.1 percent Q-o-Q (up 4 percent Y-o-Y) to Rs. 9,003.2 crore, according to Motilal Oswal.
Brokerages say the demand pullback is expected to be severe in the directly impacted segments but BFSI and telecom could be stable in terms of growth for IT companies.
Revenue impact will pressurize the margins. Goal is to get back to margin to teens by a year.
Brokerage firm Kotak Institutional Equities expects a 21.9 percent year-on-year (YoY) fall and 22.8 percent quarter-on-quarter (QoQ) fall in Tech Mahindra's adjusted net profit at Rs 884 crore for Q4FY20.
The deal signed in 3Q will see some addition cost impact in 4Q.
Antique Stock Broking expects a 17 percent YoY decline in Tech Mahindra's net profit to the tune of Rs 1,010.9 crore, while EBITDA, too, is expected to see a 13 percent YoY fall to Rs 1,500.1 crore.
Net Sales are expected to increase by 3.4 percent Q-o-Q (up 4.9 percent Y-o-Y) to Rs. 9,378.7 crore, according to Motilal Oswal.
Key things to watch out for would be increase in deal sizes & tenures in digital; demand commentary, specifically BFSI & retail; and commentary on the improving geopolitical scenario.
Net Sales are expected to increase by 2.9 percent Q-o-Q (up 3.2 percent Y-o-Y) to Rs. 8,902.7 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 2.5 percent Q-o-Q (up 2.8 percent Y-o-Y) to Rs. 8,871.8 crore, according to Motilal Oswal.
The IT company's profit fell 15.3 percent sequentially to Rs 959 crore despite higher other income, impacted by subdued revenue and operating income.
Kotak expects sequential EBIT margin decline of 250 bps contributed by -- (1) 100 bps impact from wage revision, (2) higher visa applications, (3) Rupee appreciation and (4) seasonal impact of lower Comviva revenues.
Net Sales are expected to decrease by 1.9 percent Q-o-Q (up 5.4 percent Y-o-Y) to Rs. 8,721.7 crore, according to Prabhudas Lilladher.
Net Sales are expected to decrease by 2.3 percent Q-o-Q (up 5 percent Y-o-Y) to Rs. 8,686.2 crore, according to Kotak.
In India, defence modernisation is another focus area for the company. The company recently signed Rs 300 crore defence contract.
While the stock valuation is reasonable, we would like to wait for the currency headwind to play out in the near term and would turn buyer on further weakness
The IT major is expected to come out with its March quarter earnings on May 21.
Net Sales are expected to increase 11 percent Y-o-Y to Rs. 8,939.2 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 0.6 percent Q-o-Q (up 15.7 percent Y-o-Y) to Rs. 8,997.2 crore, according to Kotak.
CLSA said strong growth in US is positive for most firms, but more for Infosys & Cognizant while strong growth in CMT is positive for Tech Mahindra, Wipro & HCL Technologies
Kotak advised adding HCL Technologies, L&T Infotech, Mindtree and Tech Mahindra which could return 8-12 percent
Even after rallying post its result, the stock offers upside given its reasonable valuation at 14.9 times FY20 estimated earnings
Net Sales are expected to increase by 4.2 percent Q-o-Q (up 15.6 percent Y-o-Y) to Rs. 8,991.3 crore, according to Dolat Capital.
Net Sales are expected to increase by 3.4 percent Q-o-Q (up 14.8 percent Y-o-Y) to Rs. 8,923.7 crore, according to Prabhudas Lilladher.