AgenciesRelated
NEW DELHI: Tata Consultancy Services (TCS) is likely to report double digit revenue growth and a high single digit profit growth for the March quarter when it reports quarterly numbers on Monday.
Analysts tracking the stock estimate revenue growth in the range of 11-16 per cent compared to last year. Profit growth is projected in the range of 8-9 per cent year-on-year.
“We expect the USD revenue to grow 3 per cent QoQ, due to high base effect in the BFSI (banking, financial services and insurance) segment. Ebit margin is expected to be a flattish 3bps QoQ despite favourable operating leverage. We are expecting similar growth in Q4FY22 against Q3FY22 led by momentum of deal wins,” said analysts at Arihant Capital.
They added that they expect TCS to report some mid and small size deals. Analysts said investors should watch out for the medium term to long term growth outlook as well.
Accenture’s estimate-beating returns have already increased the expectations from domestic IT companies. TCS, which has been underperforming compared to Infosys, will be under spotlight.
YES Securities said it expects broadly stable margin with attrition almost peaking out. Attrition, which refers to employees leaving the company in a year, had inched up to 15.3 per cent compared to 11.9 per cent in the second quarter.
In the December quarter, TCS reported consolidated net profit at Rs 9,769 crore, up over 12 per cent year-on-year. The company has also announced its biggest buyback in at least five years which was completed in March.
HDFC Securities said it factors USD revenue/EPS CAGR at 12 per cent each over FY22-24E supported by scale and breadth of services including industry platforms, market-share gains from deal bookings in the core vertical (BFSI)/core geography (North America), superior execution and operational track record and superior balance sheet.
Analysts tracking the stock estimate revenue growth in the range of 11-16 per cent compared to last year. Profit growth is projected in the range of 8-9 per cent year-on-year.
“We expect the USD revenue to grow 3 per cent QoQ, due to high base effect in the BFSI (banking, financial services and insurance) segment. Ebit margin is expected to be a flattish 3bps QoQ despite favourable operating leverage. We are expecting similar growth in Q4FY22 against Q3FY22 led by momentum of deal wins,” said analysts at Arihant Capital.
They added that they expect TCS to report some mid and small size deals. Analysts said investors should watch out for the medium term to long term growth outlook as well.
Accenture’s estimate-beating returns have already increased the expectations from domestic IT companies. TCS, which has been underperforming compared to Infosys, will be under spotlight.
YES Securities said it expects broadly stable margin with attrition almost peaking out. Attrition, which refers to employees leaving the company in a year, had inched up to 15.3 per cent compared to 11.9 per cent in the second quarter.
In the December quarter, TCS reported consolidated net profit at Rs 9,769 crore, up over 12 per cent year-on-year. The company has also announced its biggest buyback in at least five years which was completed in March.
HDFC Securities said it factors USD revenue/EPS CAGR at 12 per cent each over FY22-24E supported by scale and breadth of services including industry platforms, market-share gains from deal bookings in the core vertical (BFSI)/core geography (North America), superior execution and operational track record and superior balance sheet.
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