TCS Q3 Results Preview: Revenue, PAT likely to see muted growth; demand outlook critical

Though the top tier firms have been announcing large deal wins over the past few weeks, brokerages believe they are unlikely to translate into a major change in revenue growth forecast of the Indian IT firms.

TCS Q2 Preview: Tata Consultancy Services (TCS) is expected to report modest growth in its second-quarter earnings, with a 1.4% sequential increase in consolidated revenue and a 3% sequential rise in net profit. Analysts anticipate deal momentum for TCS to continue, despite a slowdown in discretionary spending on IT services. The company is also set to consider a share buyback plan, which has already boosted its stock price. Investors will be closely monitoring TCS's outlook for key business verticals, margin trajectory, and capital allocation policy.

Company grapples with slowing growth as clients cut spending

The company, which recently joined the Nifty club, is seen reporting a nearly 1% sequential rise in consolidated net revenue for the quarter to Rs 8,757 crore, according to the average of estimates given by 13 brokerages.However, the net profit growth will be much better than its peers given a better operational performance. The bottomline is seen rising 6.5% to Rs 1,186.40 crore

India Business News: TCS is set to release Q4 results for FY23. Analysts predict lower QoQ revenue growth of 2.5%, while there is speculation that the company may not meet

The company is seen reporting a nearly 5% sequential rise in consolidated revenue to Rs 27,959.40 cr, and net profit is expected to increase by nearly 7% to Rs 4,085 cr, according to the average of estimates given by 11 brokerage firms.

The U.S. economy's third-quarter growth was revised upwards to a 5.2% annualized rate, exceeding the previously reported 4.9%. The Commerce Department's Bureau of Economic Analysis released the second estimate, indicating the fastest expansion since Q4 2021. The revision was attributed to upgrades in business investment, state and local government spending, and residential investment.

We expect HCL's Q3FY24 revenue to grow in the mid-single digits QoQ driven by the Verizon deal ramp-up, the additional contribution from the ASAP Group acquisition for two months, and the seasonality benefits in the Products and Platform (P&P) business.

The impact of inflation on revenue growth during previous quarters is normalizing, say experts

Despite a lower passenger load factor, IndiGo managed to maintain its market share in the quarter. PLF for IndiGo remained muted for the second consecutive month at 83.6%. But IndiGo being able to maintain domestic market share despite lower PLFs indicates better aircraft/pilot availability with it versus other airlines, brokerage ICICI Securities said.