Tech Mahindra Q1 preview: Revenue to likely rise only marginally; margin to see 70 bps expansion

Tech Mahindra Q1 preview: Part of the Mahindra group -the IT major Tech Mahindra is slated to report its Q1 numbers later today. Zee Business research desk estimates revenue in rupee terms to increase only marginally sequentially from Rs 12,871 crore to Rs 12,975 crore, up 0.8 per cent. The desk estimates that weakness in Comviva impacts earnings in the Enterprise segment.

The revenue in dollar terms is estimate to be marginally higher by just 0.4 per cent sequentially to Rs 155.4 crore from Rs 154.8 crore reported in Q4FY24. The adjusted EBITDA is expected to log 10.9 per cent growth sequentially and come in at Rs 1,050 crore as against Rs 947 crore in the previous March quarter. Also, adjusted margin is expected to inch higher by 70 bps to 8.1 per cent in Q1 as against 7.4 per cent in Q4FY24.

The company in the last quarter registered an impairment of goodwill and non-current assets worth Rs 309 crore. Further, the revenue in constant currency terns is expected to rise by 0.5 per cent sequentially. 

The desk, further maintained, that on account of better efficiency and cost control, margins will see a boost in the reporting quarter.

Key watch-outs

Investors and other stakeholders will focus on the new strategic initiatives by CEO Mohit Joshi.

Tech Mahindra stock performance

Tech Mahindra shares in the last one year have scaled 31 per cent, while Nifty IT during the same time has delivered 34 per cent. The stock ahead of its results was down 1 per cent at Rs 1,518.6 per share on the BSE.