The following are the expected results for the IT giant, according to an Economic Times report which cited estimates by multiple top brokerages.
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1) TCS Q3 revenue
TCS may see an uptick between 5.2% and 6.4% in its revenue, ET reported, citing the estimates of Nomura, Motilal Oswal Financial Services, JM Financial, and Elara Capital.
The company’s revenue, especially from banking, financial services, and insurance (BFSI) and consumer businesses, will provide insight into the revival of IT demand in developed markets.
2) TCS Q3 profitability
Nomura expects profitability, measured using the earnings before interest and taxes (EBIT) margin, to increase by 110 bps, while HDFC Securities and Motilal Oswal predict a 50-80 basis point decline.
HDFC Securities expects the company’s adjusted profit after tax (PAT) growth to be 2% YoY, while others like Motilal Oswal Financial Services and Elara estimate an 8-10% YoY growth.
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3) Deals
According to BNP Paribas, TCS showed a slowdown in winning deals during the third quarter, likely due to the holiday season.
However, according to the report, the company still led the large-cap pack in this regard, with five deals from Bank of Bhutan, Telenor Denmark, Landis+Gyr, Bank of Baroda, and Chorley Building Society.
4) Q3 Furlough and BSNL deal
A furlough is a temporary and unpaid leave from work caused due to no work being available, though the status of employment still continues.
The furloughs seen in Q3, along with GCC dynamics in deals and the declining revenue from the BSNL deal may lead to a 0.8% decline in revenue compared to the previous quarter, according to Elara securities.
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5) AI
The company’s progress on GenAI is also an important factor which has to be monitored.
