Investors would be keenly watching outlook on segments such as communications and enterprise, update on uptick in 5G-related technology spending, performance of the BPO business, FY22 revenue growth, margin outlook as well as deal intake during the quarter.
They may also keep an eye on attrition rate and rise in cost. The company gave wage hikes to 70-80 per cent of staff in the June quarter.
The IT major will report its quarterly results on Monday.
HDFC Securities expects the IT major to clock a 23 per cent year-on-year (down 3.3 per cent QoQ) rise in net profit at Rs 1,309 crore on a 13.3 per cent YoY (up 4.1 per cent QoQ) rise in net sales at Rs 10,617 crore. Ebit margin was seen rising 39 basis points YoY (down 56 bps QoQ) to 14.6 per cent.
Nirmal Bang Institutional Equities said it expects Tech Mahindra to deliver a 4.5 per cent sequential growth in revenues in constant currency terms. It expects TCV at $750 million, almost the same as June quarter and double of the year-ago quarter. “Margin may decline due to higher talent hiring and retention cost,” it said.
“We expect 4.2 per cent QoQ growth in dollar revenue with cross-currency headwinds of 50 bps. We expect 3 per cent growth in communications and 5 per cent growth in the enterprise business. We expect EBIT margins to decline marginally by 10bps sequentially due to supply-side challenges,” Emkay Global said.
This brokerage expects a 24.2 per cent jump in net profit at Rs 1,322 crore from Rs 1,064.60 crore YoY. Profit for June quarter stood at Rs 1,353.20 crore. Emkay Global sees sales rising 13.8 per cent YoY (4.6 per cent QoQ) to Rs 10,668.60 crore from Rs 9,371.80 crore in the year-ago quarter.
