Mindtree Q1 preview Profit likely to jump over 35% YoY, but margins may fall on a more sequential basis


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NEW DELHI: Expects to report a 35% year-on-year (YoY), increase in net profit in the June quarter, based on a 30%+ rise in sales. Analysts predicted that travel and hi-tech verticals would lead the strong growth, while deal wins momentum and attrition will be closely monitored.

Mindtree’s profit in Antique Stock Broking is Rs 468.20 crore. This is an increase of 36.3 percent YoY over the quarter prior. Its sales are up 33.5 percent YoY from Rs 2,291.70 to Rs 3,059.50 Crore.

YES Securities is expecting the Mid-sized IT companyTo report a 38.9 percent YoY increase in net profits at Rs 477.10 million It reports net sales increasing 33.88% YoY to Rs 3,066 million

Prabhudas Lilladher stated that June is a strong month for renewals and deals. It anticipates that total contract value (TCV), in the June quarter will be similar to last year’s. It expects a sequential increase of 4 percent in dollar revenue, and a 5 percentage QoQ growth for revenue in constant currency terms. Ebit margin is now at 18%, as compared to 18.9 % in March quarter and 17.7 % in the previous year.

CMT’s top clients should also be expected to grow strongly. RCM performance is likely to be weakened by the ramp-down of one client and softness of another client with exposures to Russia, Ukraine, and China. Prabhudas Lilladher stated that we expect EBIT margins to drop by 90 bps in the following months, driven by headwinds related to visa and travel costs and one-time expenses resulting from the merger.

CMT stands for communication media and technology.

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.

(Disclaimer) Recommendations and suggestions made by experts are their opinions. These views do not reflect those of Economic Times.


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