Analysts see 16-23% YoY PAT growth, margin contraction for TechM in Q1

A near 1 per cent contribution from acquisitions and ramp-up in deals won in prior quarters are likely to modestly drive the June quarter revenue growth for information technology (IT) major Tech Mahindra (TechM), as per analysts. Growth would be mainly contributed by Enterprise segment while Communications business is expected to be weak during the quarter under review.

Deal transition costs and the impact of wage hikes will drive the Ebit (earnings before interest and tax) margins sharply lower, analysts opined. New deal TCV should be strong driven by significant deal closures in Q1, Jefferies said.

Overall, brokerages project a 16-23 per