Experts predict that the results of mid-cap IT firm Tech Mahindra will be modest for the third quarter of FY24.
TechM may report a sequential decline in overall revenue and constant currency revenues, dragged down by the communication and enterprise verticals and the poor seasonal performance seen in the third quarter.
Brokerage firm Jefferies stated that it expects TechM’s 3Q revenues to decline by 1.6 per cent q-o-q in constant currency, due to furloughs and continued portfolio optimisation in the Communication vertical.
- Also read: Tech Mahindra profit dips 61% in Q2
Meanwhile, Axis Securities pegged TechM’s revenue growth at 0.5 per cent q-o-q.
Motilal Oswal said that Tech Mahindra’s revenue might decline 7 per cent y-o-y in Indian rupee terms, following the dip in Q2, as CME and enterprise remain under pressure due to seasonality. The brokerage firm expects a 1.1 per cent q-o-q decline in constant currency revenue for Q3FY24.
Adjusted PAT, as per the brokerage firm, may drop by 39.3 per cent y-o-y and 19.5 per cent q-o-q.
The brokerage firm added that it expects to deal TCV (total contract value) at $300-500 million in Q3FY24.