- Shares of Tech Mahindra rose up to 1.75% ahead of June-quarter earnings release
- Wipro shares climbed as much as 1.73% with investors awaiting their quarterly results
- Tech Mahindra is expected to report a 17% sequential rise in net profit to Rs 1,583 crore
Shares of Tech Mahindra and Wipro traded higher on Thursday ahead of their June-quarter earnings, with investors positioning for another key day in the IT earnings season after mixed commentary from sector peers.
Tech Mahindra rose as much as 1.75% intraday to Rs 1,525, and was trading around 1.4% higher in morning trade. Wipro climbed 1.73% intraday to Rs 177.68 and was last up about 1.3%, as the Street awaited both companies' quarterly scorecards later in the day.
Among the two, Tech Mahindra is expected to report a stronger quarter. According to Bloomberg consensus estimates, the company is likely to post a 17% sequential rise in consolidated net profit to Rs 1,583 crore, while revenue is seen increasing to Rs 15,458 crore from Rs 15,076 crore in the March quarter.
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Operating performance is also expected to improve, with EBIT projected to rise 5% quarter-on-quarter to Rs 2,189 crore, lifting the EBIT margin to 14.16% from 13.82% in the previous quarter.
Wipro, on the other hand, is expected to report a more muted quarter. Bloomberg estimates suggest revenue could rise about 2% sequentially to Rs 24,730 crore, but profitability is likely to remain under pressure. EBIT is estimated to decline 1% quarter-on-quarter to Rs 4,113 crore, while the EBIT margin is seen narrowing to 16.63% from 17.18%.
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