TCS all set to kick off corporate earnings season today; shares dip
TCS shares were stuck in a narrow range around the flatline on Wednesday as investors awaited the Tata group IT giant's financial results, due later in the day. Tata Consultancy Services' upcoming earnings report will be the first under the IT giant's new CEO, K Krithivasan.
TCS share price: Tata Consultancy Services (TCS) shares were stuck in a narrow range around the flatline on Wednesday as investors awaited the Tata group IT major — India's largest IT company — to kick off the corporate earnings season later in the day. TCS shares reversed course after making a mildly positive start to the day, declining by as much as Rs 8.1 or 0.2 per cent to Rs 3,263.8 apiece in morning deals on BSE.
Tata Consultancy Services' upcoming earnings report will be the first under the IT giant's new CEO, K Krithivasan.
Analysts will track the TCS results closely for clues on demand trends for the domestic IT space, where higher employee costs — in a bid to tackle elevated levels of attrition — have been eating into margins despite robust demand for technology.
TCS to kick off earnings season; here's what to expect
According to Zee Business research, TCS is expected to report a net profit of Rs 10,900 crore for the April-June period, which translates to a decline of 4.3 per cent on a quarter-on-quarter basis — in contrast to a five per cent rise for the previous quarter. Its revenue is estimated to grow 0.8 per cent sequentially, in rupee as well as dollar terms, to Rs 59,650 crore and $7,250 million respectively.
The analysts peg its margin for the June quarter at 23.3 per cent, as against 24.5 per cent for the previous three months.
While scrapped and delayed projects are likely to come in the way of revenue growth, higher wage expenses are expected to cause margin pressure for the company, according to Zee Business research.
ALSO READ: Five key things to watch out for in TCS Q1 results
How TCS fared in Q4
Tata Consultancy Services reported a net profit of Rs 11,390 crore for the quarter ended March, missing analysts' estimates. Its dollar revenue increased more than 1.5 per cent sequentially to Rs 59,162 crore or $7,195 million for the three-month period, and revenue growth in constant currency terms stood at 10.7 per cent.
TCS shares finished the June quarter with a gain of three per cent, in line with the Nifty IT index but sharply underperforming a 10.5 per cent surge in the headline Nifty gauge.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
12:44 PM IST