Tech Mahindra Q3 Results Preview: Net profit likely at Rs 1,300 crore with 50 bps rise in margin

Tech Mahindra Q3 Results Preview: Tech Mahindra — India's fifth largest IT services company by sales — is likely to report a 1.2 per cent increase in net profit sequentially to Rs 1,300 crore for the quarter ended December 2022, according to Zee Business research. The IT major will report its quarterly financial results on Monday, January 30.

Its revenue is estimated to grow 2.8 per cent on a quarter-on-quarter basis to Rs 13,500 crore for the October-December period, according to the research.
 
In dollar terms, it is pegged at $1,641 million, up 0.2 per cent compared with the previous three months. 
 
Revenue growth in constant currency terms is estimated at 0.4 per cent, according to Zee Business research. 
 
The analysts estimate Tech Mahindra's margin — a key measure of profitability — to improve by 50 basis points sequentially to 11.7 per cent. They expect Tech Mahindra's banking, financial services and insurance (BFSI) vertical to remain soft on slower conversions and higher furloughs. 

According to the research, the IT company is expected to report an increase of 7.7 per cent in earnings before interest and taxes (EBIT) to Rs 1,580 crore compared with the July-September period.

Tech Mahindra shares rose 0.8 per cent in the October-December period, in which headline indices Sensex and Nifty50 gained 5.9 per cent each.

Earlier this month, TCS reported a set of earnings that fell short of analysts' estimates. Infosys, Wipro and HCL Tech met expectations. 

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