TCS News: Ahead of the quarterly results of IT giant TCS, the share price of this Tata Group company increased by about 2 percent in early trading on BSE on Thursday, July 11. Shares of TCS opened at ₹3944.65 against the previous closing price of ₹3909.90 and soon rose 1.8 per cent to ₹3,979.90. TCS shares were trading 0.57 per cent higher at ₹3931.50 around 10:50 am on the NSE.
According to Live Mint, most brokerage firms expect TCS’s operating revenue to decline quarter-on-quarter (QoQ) due to high wage costs. Some experts believe that there could be a gradual decline in profit after tax (PAT).
Know the opinion of 4 brokerage firms on TCS
Motilal Oswal Financial Services
Brokerage firm Motilal Oswal Financial Services expects TCS to post 1.6 per cent quarter-on-quarter growth in CCs, driven by deal scale-up including the BSNL deal. It is progressing as per plan. Motilal said PAT may fall 2.9 per cent quarter-on-quarter, but increase 9.2 per cent year-on-year. According to the brokerage firm’s estimates, EBIT margins may contract by 150 bps quarter-on-quarter due to salary hike in Q1FY25.
Nuvama Institutional Equities
Nuvama expects TCS to deliver 14 per cent q-o-q CC revenue growth and 1.1 per cent q-o-q USD growth due to improvement in BFSI and continued strength in manufacturing. “Margins should decline by about 140 bps quarter-on-quarter due to wage growth.
ICICI Securities
The brokerage firm expects TCS to report 1.7 percent USD and 1.8 percent CC quarter-on-quarter revenue growth, driven by traction in BFSI, retail (consumer business group) and high-tech from the deals announced in the first quarter. . It expects EBIT margins to decline by 186 bps QoQ due to higher staff costs.
