Software services provider Tech Mahindra 's first quarter (April-June) profit is seen falling 20 percent sequentially to Rs 717 crore but revenue may grow 0.3 percent to Rs 6,903 crore, according to average of estimates of analysts polled by CNBC-TV18. Dollar revenue may increase 0.6 percent to USD 1,028.5 million in the quarter ended June 2016 compared with USD 1,022.6 million in preceding period. Dollar revenue
growth may be aided by 1 month contribution of Pininfarina acquisition (which closed in May) and enterprise business but that will be offset by telecom vertical hit by seasonal weakness in Comviva and LCC. Earnings before interest and tax may decline 3.5 percent to Rs 911 crore and margin may contract by 50 basis points to 13.2 percent on sequential basis due to seasonal weakness in Comviva and visa cost. Analysts see two key areas of concern - telecom due to client specific challenges and rationalisation of business in the recently acquired entity LCC and margin contraction.
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