Tech Mahindra Q3 result preview: Revenues to decline QoQ; deal wins to be muted

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Key Points

Analysts expect the deal wins to remain muted due to weak macro and slow decision-making.ETMarkets.com..

IT services company Tech Mahindra is expected to see a sequential decline in revenue in the December quarter due to weakness in the communication vertical segment and higher furloughs..

We expect TechM's 3Q revenues to decline by 1.6% QoQ in CC, due to furloughs and continued portfolio optimisation in the Communication vertical..

We expect margins to expand by 330 bps QoQ (70bps on a normalised basis) due reversal of one-offs and operational efficiencies, somewhat offset by revenue decline..

We expect the company to report revenue growth of 0.5% on a QoQ basis while its margins are likely to expand due to strong growth in volume and reshuffling of the portfolio...

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