TCS Q3 FY25 Results Preview: Tata group IT giant all set to kick off earnings season; analysts expect 4% sequential rise in PAT
Tata Consultancy Services (TCS), the countrys largest IT firm, is set to kick off a new earnings season on Dalal Street soon. Analysts expect the Tata group IT giant to stage a decent quarterly with a 30 bps margin expansion sequentially. Read on to learn more about what you can expect in Tata Consultancy Services upcoming earnings report.
TCS Q3 FY25 Results Preview: Tata Consultancy Services (TCS), the country's largest IT company, is set to kick off a new earnings season on Dalal Street soon. The Tata group IT giant is scheduled to report its financial results for the October-December period on Thursday, January 9. Analysts expect the Mumbai-headquartered software exporter to stage a decent financial performance for the third quarter of the financial year, backed by sustained momentum in the banking, financial services and insurance (BFSI) segment.
TCS Q3 FY25 Earnings Preview: What can investors expect?
According to Zee Business research, Tata Consultancy Services is set to register a net profit of Rs 12,400 crore for the quarter ended December 31, which translates to a 4.1 per cent increase sequentially.
The analysts expect the IT major to log quarterly revenue of Rs 64,380 crore or $7,625 million versus Rs 64,259 crore or $7,670 million in the July-September period.
Revenue in constant currency terms—or revenue without the impact of currency fluctuations—is expected to increase 0.3 per cent sequentially.
TCS Q3 Results Preview: How you can expect the Tata group IT major to fare operationally
Zee Business analysts peg Tata Consultancy Services' quarterly earnings before interest and taxes (EBIT) at Rs 15,700 crore, marking a quarter-on-quarter rise of 1.5 per cent.
They expect the IT giant to clock a 24.4 per cent margin for the third quarter of the financial year, as against 24.1 per cent for the July-September period.
Key things to watch out for in TCS earnings report
The following aspects are likely to be in focus in the upcoming earnings report:
- BFSI vertical performance
- Deal wins
- Attrition
- Demand outlook
TCS Shares
As of January 8, TCS shares have grown 11.7 per cent in the past year. The Nifty50 and Nifty IT indices have risen 10.1 per cent and 26.4 per cent during this period, respectively.
In the December quarter, the Tata group stock declined 4.0 per cent while the Nifty50 dropped 8.4 per cent and the Nifty IT gained 3.3 per cent.
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