- 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.
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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