Tech Mahindra share price was trading higher today ahead of the IT firm's Q4 earnings set to be announced later in the day. Tech Mahindra share gained up to 4.45% to Rs 552.25 compared to the previous close of Rs 528.85 on BSE.
The large cap stock gained 8.84% in the last 4 days. The stock is trading higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages The stock of Pune-based firm has lost 35.37% during the last one year and 29.26% since the beginning of this year.
Tech Mahindra share hit its 52 week high of Rs 846 on May 2, 2019 and 52 week low of Rs 370 on March 23, 2020.
Total 1.22 lakh shares changed hands amounting to turnover of Rs 52,146 crore on BSE.
Kotak Institutional Equities sees a 21.9 percent year-on-year (YoY) decline and 22.8 percent quarter-on-quarter (QoQ) fall in Tech Mahindra's adjusted net profit at Rs 884 crore for Q4FY20. "We expect a steep net profit decline sequentially due to forex loss against forex gains of Rs 143 crore in December 2019 quarter and decline in EBIT margins," Kotak said.
Revenues may rise 9.8 percent YoY to Rs 9,763.8 crore while revenue in constant currency (CC) terms may fall 30 bps YoY, Kotak said.
Brokerage Sharekhan expects the firm to post a 20.8 percent YoY and 21.8 percent QoQ decline in net profit to Rs 897 crore. Revenue is likely to decline 0.2 percent QoQ on CC basis despite additional revenue contribution from BORN acquisition and ramp-up of Prudential deal, Sharekhan said.
"The decline in revenue during the quarter is expected due to lower billings in BPO (10 percent of its total revenue), a drop in AT&T revenue, decline in Pininfarina revenue, China shut-down, and cancellation of few network projects. Further, the cross-currency headwind is expected around 110 BPS on its dollar revenue," Sharekhan said.