Tech Mahindra Q3 Preview: Profit set to climb despite one-time labour code charges
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Tech Mahindra is expected to report steady revenue performance along with improved profitability in the December quarter, supported by margin expansion and cost optimisation measures. As per the average estimates of six brokerages, the company’s revenue is projected to rise by around 7% year-on-year in Q3, while profit after tax is likely to jump about 40% YoY. The estimated PAT growth does not account for any potential impact from labour code-related provisions. However, given the strong scale of growth projected by brokerages, Tech Mahindra is likely to report profit expansion, setting it apart from many of its larger IT peers. Revenue outlook: Modest growth, led by enterprise traction Most brokerages anticipate that Tech Mahindra’s revenue growth will remain modest on a sequential basis, pointing to a slow and steady recovery rather than a sharp bounce-back. HSBC expects dollar revenue to rise by about 0.5% quarter-on-quarter, even as ...