TCS result
The quarterly results of the country’s leading IT company TCS are to be announced today, due to which many sentiments are at work in the market. On January 12, there was a slight decline in TCS shares due to the selling in the stock market. But when the market recovered, the stocks also fled. Till the time of writing the news, a rise of 0.20 percent is being seen in the shares of the company. The company’s shares are currently trading at Rs 3214.35.
Most IT companies are expected to improve their earnings in Q3 compared to last year. However, brokerage firms say growth may remain slow on a quarter-on-quarter basis due to holidays and fewer working days compared to the second quarter. In the case of TCS, analysts are expecting slight growth in overseas business, but there may be some decline in India business. The profit level (EBIT margin) is likely to remain almost stable, as the weak rupee allows the company to cover its fixed investment expenses. Kotak Institutional Equities (KIE) estimates that new large orders (TCV) received by TCS in this quarter could be between US$1011 billion.
Such results are expected
According to Seema Srivastava, Senior Research Analyst, SMC Global Securities, TCS’s Q3 results may remain strong overall. However, revenue growth may remain limited on a quarterly basis due to rupee weakness and cautious spending by clients, while the demand for digital transformation remains in the long run. He further said that TCS is expected to continue to focus on cloud-related services, artificial intelligence, data analysis and cyber security in this quarter. Companies are now emphasizing on lower costs, more automation and better functioning in their technology planning. If the results of the company remain positive then its shares will be seen in future also.
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