IT major Tata Consultancy Services (TCS) is expected to announce its quarterly results later today and is expected to post an estimated net profit of Rs 6,483 crore, a 4.4% fall on a quarterly basis and a 2.2% growth on a yearly basis. In the December-end quarter, TCS had reported a net profit of Rs 6,778 crore.
IT major Tata Consultancy Services (TCS) is expected to announce its quarterly results later today and is expected to post an estimated net profit of Rs 6,483 crore, a 4.4% fall on a quarterly basis and a 2.2% growth on a yearly basis. In the December-end quarter, TCS had reported a net profit of Rs 6,778 crore.
TCS' results will be keenly watched on Tuesday after its rival Infosys disappointed investors with a lower-than-expected growth in net profit for the March-ended quarter at Rs 3,606 crore.
This will be the first quarterly announcement for the company after N Chandrasekaran departed to fill the corner office left empty by Tata Sons' ousted chairman Cyrus Mistry.
TCS - India's largest IT company by revenue - is expected to post an estimated revenue of $4,472 million (approximately Rs 29751.09 crore), a growth of 1.9% compared to the preceding quarter and 6.3% over the March-ending quarter last year, according to a institutional research report by HDFC Securities. The marginal growth in the company's revenue is expected on the back of the impact of rupee appreciation on the company's financials.
TCS had reported $4,387 million (nearly Rs 29185.61 crore - according to current rates) revenue in dollar terms for the December quarter.
However, the Earnings Before Interest Tax Depreciation and Amortization (EBITDA) margin is estimated at 27.1%, 70 basis points lower on a quarterly basis. The company's EBITDA is expected be hit by a weak rupee too.
Its adjusted Earnings Per Share (EPS) is expected to be Rs 32.9 in the January - March quarter compared to Rs 34.4 in the October - December quarter.
The results will be keenly watched to find indicators of a change in business strategy after prominent leadership changes, including the appointment of Rajesh Gopinathan as the managing director and CEO, NG Subramaniam as the COO, and V Ramakrishnan as the CFO in the quarter gone by.
On Monday, TCS' shareholders gave their nod for a share buyback for Rs 16,000 crore, the biggest in the Indian capital market, ahead of the quarterly results. The cash will be used to distribute surplus cash to shareholders.
Significant changes in the hiring policy will also be watched as US President Donald Trump inches closer to sign an executive order to reform the H1-B visa regime which will tighten the process of issuing visas to overseas labour.
TCS' shares were trading up 0.09% or Rs 2 at Rs 2,322.85 apiece ahead of the results. They opened higher at 2,325 a share.
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