Mindtree Q1 preview: Profit likely to surge over 35% YoY; margin may fall on sequential basis
Antique Stock Broking sees Mindtree’s profit at Rs 468.20 crore, up 36.3 per cent YoY over Rs 343.40 crore in the year-ago quarter. It sees sales rising 33.5 per cent YoY to Rs 3,059.50 crore from Rs 2,291.70 crore.
YES Securities expects the midcap IT firm to report a 38.9 per cent YoY rise in net profit at Rs 477.10 crore. It sees net sales rising 33.8 per cent YoY to Rs 3,066 crore.
Prabhudas Lilladher said June is a seasonally strong quarter for deals on account of renewals. It expects total contract value (TCV) in the June quarter to be in-line with last year’s quarter. It is anticipating a 4 per cent sequential growth in dollar revenue and a 5 per cent QoQ growth in revenue in constant currency terms. This brokerage sees Ebit margin at 18 per cent compared with 18.9 per cent in the March quarter and 17.7 per cent in the year-ago quarter.
“Within CMT, top clients are also expected to grow at a strong rate. RCM performance is expected to be muted because of the ramp-down of a client and softness in another client with exposure to Russia, Ukraine and China. We expect EBIT margin to decline by 90 bps sequentially led by headwinds from visa and travel cost and one-time expenses related to the merger,” Prabhudas Lilladher said.
CMT stands for communication, media, and technology and RCM for retail, CPG and manufacturing.
Investor focus may remain on the progress of the L&T Infotech merger and revenue synergies, any delay in deal execution or deal closure due to challenging macro environment, the company’s measures to sustain Ebitda margin above 20 per cent given high onsite wage inflation, and the outlook on top accounts and pricing of contracts.
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