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Reuters
2 days ago
- Business
- Reuters
India's Tech Mahindra posts marginal first-quarter revenue miss on Americas weakness
BENGALURU, July 16 (Reuters) - Tech Mahindra, India's fifth-largest IT services company by revenue, reported marginally lower-than-expected first-quarter revenue on Wednesday, as sales in its Americas market recorded the steepest decline in nearly five years. Consolidated sales rose 2.7% year-on-year to 133.51 billion rupees ($1.55 billion) in the June quarter, slightly below the average analyst estimate of 133.83 billion rupees, according to LSEG data. "The market is still very, very volatile. We are seeing a continued slowdown in the auto and manufacturing portfolios," said Mohit Joshi, CEO at Tech Mahindra. "It's a mixed picture, and I feel that it's too early to say whether the tide has turned towards significant growth, or, god forbid, towards a recession," he said in a post-earnings call. Sagar Shetty, research analyst at StoxBox called Q1 numbers a "steady" performance due to improvement in terms of deal wins and operating margin. "The company continued to exhibit resilience on the deal-win front, exceeding its typical quarterly guidance of $600–800 million, signaling sustained client confidence and healthy pipeline conversion," he said. Revenue from the Americas market, which accounts for nearly half of its overall revenue, fell 5.9% compared to last year. This marks the sharpest decline since a 6.4% drop in the December quarter of FY21 during the COVID-19 pandemic. "I would say the single biggest hit (for Americas) has been the slowdown from a manufacturing perspective," Joshi added. Uncertainty around U.S. tariffs have dampened IT firms' hopes of a revival in client confidence and spending in their biggest market. A survey, opens new tab in May showed two in five tech executives had deferred discretionary projects. Four of the company's seven business verticals grew, led by a 3.8% increase in retail. Tech Mahindra's net new bookings rose to $809 million in the quarter from $798 million in the previous quarter and $534 million in the year-ago period. Net profit rose 34% to 11.41 billion rupees, driven by improved operating margins, but missed estimates of 11.72 billion rupees, as per data compiled by LSEG. Last week, bellwether Tata Consultancy Services ( opens new tab also missed revenue estimates, citing delays in decision-making and project launches. Peers Wipro ( opens new tab and LTIMindtree ( opens new tab report later this week. ($1 = 85.9340 Indian rupees)
Time of India
4 days ago
- Automotive
- Time of India
Ola Electric surges on D-St, but analysts still advise caution
Shares of electric two-wheeler maker Ola Electric Mobility rallied about 20 per cent on Monday, the biggest single-day move in eight months, after the company's first-quarter results were better-than-expected. The stock is best suited for high-risk traders and investors, as analysts warn of continued sharp price swings in months ahead. Ola ended at ₹47.7 on Monday, up 19.75 per cent , after hitting a fresh 52-week low of ₹39.6. ' Ola Electric 's Q1 shows a sharp operational turnaround—losses narrowed from ₹870 crore to ₹428 crore, gross margins hit a record 25.6 per cent , and the auto segment turned Ebitda (earnings before interest, taxes, depreciation, and amortization)-positive in June,' said Jahol Prajapati, research analyst at Samco Securities . Its revenue from operations also rose to ₹828 crore in the June quarter from ₹611 crore in the previous quarter. However, it was down almost 50 per cent from the same period a year ago. 'The company's bullish forecast of 35-40 per cent margins and upcoming ramp-up of new products further renewed interest in the stock,' said Sagar Shetty, research analyst, StoxBox. 'The growth during the quarter was largely supported by the successful launch of its Gen 3 scooters, aiding the company to maintain accretive margins.' The company said in an exchange filing that it expects to sell between 325,000 and 375,000 vehicles and generate revenue of ₹4,200-₹4,700 crore for FY26. Ola shares are down around 48 per cent since their debut in August 2024. As the stock declined, retail investors increased their stakes in the company. The percentage of retail shareholders holding less than ₹2 lakh in the company has increased to 12 per cent in the March quarter from 4.45 per cent at the time of listing. Shetty said that Ola continues to cede significant market share to established players and has a track record of overly optimistic guidance. 'We recommend investors maintain a cautious approach and suggest that they wait to see how the second quarter unfolds in terms of sales and overall performance,' he said. Prajapati said Ola is building a 'credible profitability' story, on account of continued cost discipline, improving warranty dynamics, and an FY26 target of 35-40 per cent gross margins. 'For investors with a high-risk appetite, it's a bold EV play on vertical integration. Conservative investors might still prefer steadier names like TVS or Bajaj for now,' he said.
Business Recorder
10-07-2025
- Business
- Business Recorder
India's TCS misses first quarter revenue view as CEO flags demand contraction
BENGALURU: India's Tata Consultancy Services reported lower-than-expected first-quarter revenue on Thursday as clients of the $283 billion Indian IT sector stayed cautious amid tariff-related uncertainty. Consolidated sales at India's largest IT services firm by revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter against analysts' average expectation of 646.66 billion rupees, as per data compiled by LSEG. Uncertainty around U.S. tariffs has quashed IT companies' hopes of a revival in client confidence and spending in its biggest market. A survey in May showed two in five tech executives had deferred discretionary projects. 'The continued global macro-economic and geo-political uncertainties caused a demand contraction,' TCS CEO K Krithivasan said. TCS is the first Indian tech major to report results. Rival HCLTech reports next week, while Infosys the week after that. Last month, IT bellwether Accenture's shares dropped as much as 6% after it reported tepid deal-booking numbers in its quarterly results. India's Glenmark Pharma unit, Abbvie sign exclusive licensing pact TCS's revenue in four out of its six verticals fell compared to the same period last year, while banking and financial services' revenue grew 1% and tech services rose 1.8%. Its total order bookings stood at $9.4 billion during the quarter, from $12.2 billion in the previous quarter and $8.3 billion in the year-ago period. 'Deal wins remained muted, with client losses in larger contracts and flattish margins,' said Sagar Shetty, research analyst at StoxBox. 'While green shoots in banking and tech verticals offer some respite, softness in U.S. and Europe raises demand concerns,' he said. TCS's net profit rose 6% in the three-month period to 127.60 billion rupees against analysts' estimate of 122.16 billion rupees. The profit beat was largely because of a wage hike delay and a jump in other income. Its shares listed in Mumbai closed 0.1% lower ahead of the results.
Economic Times
31-05-2025
- Automotive
- Economic Times
Ola Electric skids as widening losses dent sentiment
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Shares of electric two-wheeler maker Ola Electric Mobility declined 4.5% on Friday after the company's weak fourth quarter results, and a loss in market share disappointed investors. Kotak Institutional Equities downgraded the stock to 'Sell' and cut its price target to ₹30 from ₹50 earlier, implying a downside of 41% over Friday's closing price of ₹50.85."The past couple of quarters' performance has been marred by a weaker volume print and rising warranty provisions, which weighed on profitability," said the brokerage."With a deteriorating balance sheet, the company needs to scale up its volumes to reduce cash outflow."Ola's losses widened from ₹564 crore in the December quarter to ₹870 crore in March, while revenue from operations fell by 41.5% in this period."Ola Electric's fourth quarter results reflect a sharp deterioration in its key financial metrics, underscoring deep-rooted operational and strategic concerns," said Sagar Shetty, research analyst, StoxBox. "These challenges are further exacerbated by intensifying competition in the EV two-wheeler space, as legacy players aggressively scale up and consolidate market share."In May, TVS and Bajaj Auto have already crossed Ola in terms of electric two-wheeler sales, as per Vahan said the near-term outlook for the stock is clouded because "consumer confidence in the company appears to be undermined by ongoing concerns surrounding the company's sales reporting practices and consumer services issues".Ola Electric got listed in August last year. The IPO was priced at ₹76. The stock hit an all-time high of ₹157.4 soon after the Goldman Sachs remains bullish on the stock, with a 'Buy' rating, while cutting its price target from ₹75 to ₹70, implying 38% upside from here."We view the current valuation levels as attractive, given the pure-play EV exposure and high growth potential ahead," said the Goldman brokerage said catalysts for the stock include electric motorcycle launches, electric three-wheeler launches, improvement in cell production yields and PLI (production-linked incentive) certification on balance has cautioned investors against buying the stock for now and to wait for clear, sustained improvements in the company's financial performance in upcoming quarters.
