Telecom firm Tata Communications Ltd's stock is down 2.54 percent ahead of its fourth-quarter earnings tomorrow (April 19). The company is an enterprise telecom player and gets its revenues from voice and data. Data is 70 percent of their revenues and that is what the street focuses on.

The street expects topline growth of 11-12 percent and a little bit of margin compression as the company has been adding to its headcount which could hurt the data business margins.

Analysts do not expect macro weakness in US and Europe to impact the company's business at least in this quarter as the company is sitting on a very strong order book.

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In fact, the company has had a strong order pipeline for the last few quarters but was unable to execute it due to the chip shortage. Now that the chip shortage is getting resolved, the company is able to execute its order book. So the macro uncertainty in US and Europe is unlikely to hurt Tata Communications in the current quarter.

So, the fourth quarter is expected to be a steady quarter with the company meeting its margins guidance of 23-25 percent.