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Strong Pipeline of New Deals to Propel Tech Mahindra’s Q2 Earnings – India

By Malvika Gurung — The Indian technology service provider Tech Mahindra (NS:TEML) will release its earnings report for the quarter ending September 2021 on Monday.

Check what to expect from Tech Mahindra’s Q2 earnings results.

Experts predict the company to post a 5% increment in revenue growth on a sequential basis due to the strong performance of the Enterprise Segment and rising momentum of 5G deals in the Communication Segment.

Kotak Institutional Securities states that multiple small acquisitions by the tech major, like Eventus Solutions and DigitalOnUs will push the company’s revenue by 0.8% or $11.5 million. The brokerage predicts the revenue at Rs 10.6 crore.

Investors will closely monitor the Enterprise and Communication segments, as digitization activities have surged and company spendings on the development of 5G deals and technology have shown an uptick too.

In terms of cash credit (CC) basis, Sharekhan estimates revenue growth of 4.8% QoQ, with dollar revenue to grow by 4% QoQ. Motilal Oswal (NS:MOFS) expects this figure (CC) to rise by 3.5% QoQ and dollar revenue to rise to $1.4 million.

Kotak Institutional Securities expects the pipeline of new deals to be strong enough to result in robust growth. The total variable cost of new deals is expected to be in the range of USD 700 million, which is about USD 300 million more than the quarterly average.

Another key figure which will garner experts’ watch will be the attrition rate.