What should investors expect from TCS Q1 results due on Thursday?
TCS is likely to report a 4.1% QoQ growth in dollar-denominated revenue at $4.06 bn for the June quarter, an ET Now poll said.
By ET Online | Updated:
NEW DELHI: TCS is likely to report a 4.1 per cent QoQ growth in dollar-denominated revenue at $4.06 billion for the quarter ended June, an ET Now poll said.
The company had logged $3.9 bn revenue in the previous quarter.
TCS has historically delivered more than 5 per cent sequential growth in the dollar denominated revenue during each of the June and the September quarters of the past five years, ETIG said in a report.
Net profit before bonus payout for the IT major is likely to fall by 7.75 per cent for the quarter ended June 30 to Rs 5,448 crores, compared to Rs 5,906 crore in the previous quarter.
The country's largest software exporter will detail its March-June quarter on Thursday.
The banking, financial services, and insurance ( BFSI) and retail verticals are expected to report better traction. These verticals together contribute over 54% to the total revenue. On the other hand, energy, telecom and insurance verticals are likely to stay muted.
Earnings Before Interest & Tax (EBIT), an indicator of a company's profitability, is likely to slip marginally to Rs 6,571 crore for the quarter ended June 30, compared to Rs 6591 crore in the previous quarter.
EBIT margin (before bonus) is also likely to contract to 25.5 per cent in the first quarter of the current fiscal year, as compared to 27.2 per cent recorded in the previous quarter.
Added to the financial performance in Q1 FY2016E, the management commentary on expected deal pipeline and sectors such as Energy and Telecom will stay instrumental in determining the medium term outlook for the sector.
"TCS' Insurance Business outlook will stay the key thing to watch for, in the results commentary," Microsec Capital said in a report. They expect TCS' dollar topline to increase 2.6% sequentially to $4,001.4 million.
Shares of TCS ended 0.95 per cent lower at Rs 2594.05 on BSE on Wednesday. They hit a low of Rs 2584.10 and a high of Rs 2622.45 in trade.
Q1FY16 Expectations:
* Marginal cross-currency headwinds likely * EBIT margins to decline by 170 bps due to wage hike, visa costs * Wage hike to be partially offset by 2.1% Rupee depreciation * Due to lower margin & forex gain, net profit to be lower
The company had logged $3.9 bn revenue in the previous quarter.
TCS has historically delivered more than 5 per cent sequential growth in the dollar denominated revenue during each of the June and the September quarters of the past five years, ETIG said in a report.
Net profit before bonus payout for the IT major is likely to fall by 7.75 per cent for the quarter ended June 30 to Rs 5,448 crores, compared to Rs 5,906 crore in the previous quarter.
The country's largest software exporter will detail its March-June quarter on Thursday.
The banking, financial services, and insurance ( BFSI) and retail verticals are expected to report better traction. These verticals together contribute over 54% to the total revenue. On the other hand, energy, telecom and insurance verticals are likely to stay muted.
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Earnings Before Interest & Tax (EBIT), an indicator of a company's profitability, is likely to slip marginally to Rs 6,571 crore for the quarter ended June 30, compared to Rs 6591 crore in the previous quarter.
EBIT margin (before bonus) is also likely to contract to 25.5 per cent in the first quarter of the current fiscal year, as compared to 27.2 per cent recorded in the previous quarter.
Added to the financial performance in Q1 FY2016E, the management commentary on expected deal pipeline and sectors such as Energy and Telecom will stay instrumental in determining the medium term outlook for the sector.
"TCS' Insurance Business outlook will stay the key thing to watch for, in the results commentary," Microsec Capital said in a report. They expect TCS' dollar topline to increase 2.6% sequentially to $4,001.4 million.
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Shares of TCS ended 0.95 per cent lower at Rs 2594.05 on BSE on Wednesday. They hit a low of Rs 2584.10 and a high of Rs 2622.45 in trade.
Q1FY16 Expectations:
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* Marginal cross-currency headwinds likely * EBIT margins to decline by 170 bps due to wage hike, visa costs * Wage hike to be partially offset by 2.1% Rupee depreciation * Due to lower margin & forex gain, net profit to be lower
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