Tech Mahindra Q4 result preview: Profit, revenue may shrink YoY; updated on CME vertical, leadership to be in focus

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Q4 results today: Bajaj Finance, IndusInd Bank, Tech Mahindra among 38 companies to report Q4 earnings on April 25 Apart from key numbers, the outlook on the growth and margin in the CME vertical, updates on business rationalisation exercises, BFSI contribution, leadership changes and the timing and extent of salary hikes are expected to be in focus. Brokerage firm Nirmal Bang expects Tech Mahindra to report a 4.5 per cent year-on-year (YoY) fall in Q4FY24 revenue. Quarter-on-quarter (QoQ), revenue may come flat.

Tech Mahindra is poised for a significant surge in its fourth-quarter profit after tax (PAT), with estimates from Nirmal Bang indicating a potential leap of nearly 77 per cent quarter-on-quarter. However, year-on-year, the brokerage firm's estimates suggest a decline of 19.2 per cent. EBIT may fall 28 per cent YoY but rise 57 per cent QoQ, while EBIT margin may rise by 140bps QoQ to 8.4 per cent in Q4FY24, said the brokerage firm.

Also Read: Meta Q1 Results: Facebook parent more than doubles profit to $12.37 billion, revenue up 27% to $36.46 billion Nirmal Bang believes, there may be some impact of the business rationalisation exercise continuing in Q4FY24. It had a 120bps impact on margins in Q3FY24. Overall, Nirmal Bang expects TCV (total contract value) to be higher than the Q3FY24 TCV of $381 million.