TechM says Q1 results on July 26. Here's what analysts say

Tech Mahindra Ltd (TechM) on Tuesday said it would announce its June quarter audited results on July 26. In a filing to BSE, the tier I IT firm said it will also host a conference call where Tech Mahindra’s management will discuss the performance of the quarter and answer participants’ questions during the call.

A replay of the conference call will be available after the call until August 4, the IT firm said. 

In its preview note, Phillip Capital said it sees constant currency (CC) revenue for TechM falling 1.8 per cent QoQ, led by its CME vertical due to Comviva seasonality and overall weakness in CME. The Enterprise vertical also is expected to see a marginal decline due to weakness in BFSI, Hitech. Margins are expected to contract 90 basis points (bps) sequentially due to lack of growth, Comviva seasonality and partial wage hikes.

This brokerage sees profit for TechM at Rs 1,101 crore, down 2.6 per cent YoY. Revenue is seen rising 6.3 per cent YoY to Rs 13,510 crore, with Ebit margin seen contracting 80 basis points to 10.2 per cent from 11 per cent YoY.

HSBC sees profit for TechM at Rs 1,144 crore, up 1.1 per cent. It sees sales rising 5.7 per cent YoY at Rs 13,436 crore. Ebit margin is seen at 10.7 per cent.

"We believe margins for TechM will continue to be under pressure in Q1; while the new management has levers to pull to increase TechM's margin over FY24-FY25e, over the short term we expect pressure from SG&A and lower volumes to drag margins," HSBC said.