Expect TCS to have a very strong quarter: Bhavin Shah, Equirus Securities

In an interview with ET Now, Bhavin Shah, CEO, Equirus Securities, shares his views on the Q2 results of Infosys as well as his expectations from the results of TCS and HCL Tech. Excerpts:

ET Now: There are lots of reasons to smile -- be it the bonus issue, the guidance, the strong margin performance. What stood out, according to you?

Bhavin Shah: There will be growth on constant currency terms, which is pretty good. They have been able to maintain the guidance in spite of the tailwind rather headwind. I also think that the interim dividend would be significantly more compared to the last year. The company is clearly going to pay out more cash.

ET Now: What are you expecting in terms of results from TCS as well as HCL Tech?

Bhavin Shah: We do expect TCS to have a very strong quarter especially because they are going to integrate the revenues of the Mitsubishi joint venture and generally they have had good traction across the board. TCS could also come up with positive surprise.

ET Now: It has been a pretty strong uptick on Infosys stocks. What is your outlook for Infy going forward?

Bhavin Shah: I will still be watchful. If you look at some of the key trends that we will watch out for, attrition is still rising. More importantly, client attraction is still not there when you look at the client matrices in terms of large clients.

TCV has announced its value. The total contract value they won is still very small compared to their price. So this does not translate into higher growth.