TCS, Infosys to announce Q3 results today: What to track, how to trade

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Key Points

Analysts anticipate TCS to deliver 1.5% QoQ cc revenue growth driven by large deal ramp-ups, with margin expansion driven by operational efficiencies..

"We expect TCS to deliver 1.5% QoQcc revenue growth driven by large deal ramp-ups including BSNL deal, with some offsets from furloughs and ongoing revenue leakage..

Analysts would be tracking TCS' BFSI vertical performance, medium-term industry demand trends and impact of macro headwinds on demand, commentary on the US and Europe markets and client budgets, deal wins and deal pipeline, investments in GenAI partnerships and solutions, updates on the BSNL deal ramp-up...

Global broking firm BNP Paribas expects USD revenue decline of -0.5% q-q (-0.2% q-q in CC) due to seasonal furloughs and the continued impact of a slowdown related to a cut in discretionary tech spending partially offset by the Danske Bank deal ramp-up...

Investor focus would be on the reason for cancellation of the MoU that could have translated into a mega deal of US$1.5 billion, translation of mega deals into revenues, deal pipeline, outcome of annual client budgeting exercise and its implications for FY2025, discretionary spending environment, especially in impacted verticals and reasons for senior leaderships exits and replacements...

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