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IT company Tech Mahindra will release its earnings report for Q4 FY23 today.
According to analyst views, Tech Mahindra is expected to report a decline in revenue growth in constant currency terms for the quarter ended March, on a sequential basis mainly on account of due to fewer working days and extended furloughs in January.
The fourth quarter is usually a seasonally weak one. ICICI Direct predicted in its research report that Tech Mahindra’s revenue is expected to decline by 1 per cent, while EBITDA margins will also decline by 10bps.
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Motilal Oswal said that extended furloughs, broad-based softness, and persistent headwinds in the telecom client will result in a 0.7 per cent constant currency revenue decline in 4Q FY23.
The IT major’s profit is seen falling 13.9 per cent YoY, while revenue in dollar terms may grow at 0.3 per cent. It expects revenue in constant currency terms to de-grow 0.7 per cent for the quarter.
Expected deal wins and hiring are also expected to remain soft.
Tech Mahindra’s consolidated net profit came in at ₹1,296.6 crore, down 5 per cent YoY for the third quarter ended December 31, 2022. The company posted ₹1,368.5 crore profit in the year-ago period, while revenue from operations came in at ₹13,734.6 crore for the third quarter under review, up 20 per cent year-on-year and 4.6 per cent quarter-on-quarter.
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