PremiumIndia's top IT company Tata Consultancy Services Ltd (TCS) is set to kickstart the earnings season for the third quarter of the current fiscal (Q3 FY23) on Monday. Ahead of its Q3 results, TCS shares closed more than 3% higher at ₹3,310 apiece on the BSE.
The IT stock had hit a 52-week high on January 18, 2022 at ₹4,045.50 per share and a 52-week low on September 26, 2022 at ₹2,926. TCS shares have declined about 14% in a year's period
The Indian IT services sector is expected to report moderate growth in Q3 FY23, primarily on account of the seasonally weak quarter and a slowdown in growth momentum led by uncertainties in the US and UK
Its Operating Margins are likely to remain flat owing to moderation in supply-side constraints.
BNP Paribas models a 33 bps q-q EBIT margin expansion to 24.3% as supply-side challenges ease and utilisation and productivity levers kick in
Analysts at BNP Paribas expect TCS' dollar revenue growth of 1.4% q-q (+1.5% q-q in CC) due to the impact of usual seasonality.
Another brokerage Axis Securities expects TCS to report revenue growth of 3.6% on a sequential basis (QoQ)
Key things to watch out for: Outlook on growth/margins, medium-term industry demand trends and impact of macro headwinds on demand; commentary on US and Europe markets; deal wins; deal pipeline; margin guidance
Analysts expect moderate growth, aided by ramp up on large deal wins in the previous quarters, but margins could remain flat due to moderation in supply side constraints
Ahead of its Q3 results announcement, shares of TCS closed more than 3% higher at ₹3,319 apiece on the BSE on Monday
TCS' board will also be considering the declaration of third interim dividend to the equity shareholders in its board meet today.
The IT major said that, if declared, the interim dividend shall be paid to the equity shareholders of the company whose names appear on the Register of Members of the company or in the records of the Depositories as beneficial owners of the shares as on Tuesday, January 17, 2023 which is the Record Date fixed for this purpose
TCS will announce its results for the third quarter of FY 2023, ended December 30, on January 9, 2023, after-market trading hours
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