Tata Consultancy Services (TCS), India's largest IT software services exporter, will declare its results today (April 18). Investors and analysts will be keenly watching the performance and management commentary after weak Q4 results and revenue guidance for 2017-18 by Infosys.
TCS shares closed almost flat at Rs 2,321 apiece on Monday on the BSE while the Sensex and Nifty ended 0.16 percent and 0.13 percent lower, respectively. FIIs were net sellers of Indian equites worth Rs 251 crore, according to provisional data released by the National Stock Exchange (NSE).
IDBI Capital Markets & Securities had projected Q4 revenues for TCS to come in at $4,442 million, translating into 1.2 sequential growth from $4,387 million in Q3 and 5.6 percent more than $4,207 million in the fourth quarter of 2015-16.
Nirmal Bang Institutional Equities had estimated Q4 revenues at $4,465 million, marking an increase of 1.8 percent sequentially and 6.13 percent, YoY. "With clients' spending budgets finalised by now, we will be watching how BFSI spending is going to pan out for 2017 as this constitutes the largest chunk of business (~40%) for the company," the brokerage said in a note.
Motilal Oswal Securities Ltd. had projected Q4 revenues of TCS to rise 7 percent YoY to $4,504 million.
For Tata Consultancy Services (TCS), Q4 was a significant one, when N Chandrasekaran moved to helm Tata Sons in January after a 31-year stint at the company, paving the way for CFO Rajesh Gopinathan's elevation as MD & CEO.
Other top-level changes at TCS included appointment of V Ramakrishnan as chief financial officer (CFO) and N Ganapathy Subramaniam as the President and Chief Operating Officer (COO).
For the third quarter ended December 2016 (Q3), TCS had reported upbeat results.
The company's consolidated net profit rose 10.9 percent to Rs 6,778 crore from Rs 6,110 crore in the corresponding quarter last financial year. On a sequential basis, the growth is 2.9 percent from Rs 6,586 crore in the September quarter.
Total income at Rs 29.735 crore in Q3 marked an increase of 8.7 percent YoY and 1.5 percent sequentially. Digital revenues accounted for 16.8 percent of the total revenues and grew 30.8 percent YoY. In constant currency terms, income rose 2 percent to $4,387 million.
The bank declared the third interim dividend of Rs 6.50 per equity share of the face value of Re 1 each.
