After Infosys poor show, will TCS be able to bring back hope in IT sector?

After Infosys' "no show", now all the eyes are on Tata Consultancy Services (TCS). 

Last week TCS rival, Infosys had published its report card for the financial year 2017. The company's overall performance for the fiscal remained flat. 

Interestingly, on the day of result announcement, on April 13, 2017, the shares of TCS and Wipro dropped even more than Infosys. There were several reports which said that the investors have lost hope in Wipro and TCS results too after Infosys' poor performance. 

ALSO READ: Here's why TCS, Wipro shares slid after Infosys Q4 result

What happened in last quarter?

In the previous quarter which ended on December 31, 2016, TCS had reported a net profit of Rs 6778 crore, up by 10.9%, as compared to as on December 31, 2015 quarter.

The company's revenue climbed by 8.7% to Rs 29,735 crore on year-on-year basis and on quarter-on-quarter basis it rose by 1.5%.

This is considered as the biggest buyback offer in the history of Indian financial markets. 

What is expected from TCS tomorrow?

IT companies have been on single-digit growth for quite sometime now. 

Ashish Chopra and Sagar Lele analysts at Motilal Oswal said, “The usual seasonality of the fourth quarter, compounded with (a) sporadic citation of concerns around budget and decision-making delays, and (b) problems in some key accounts, keeps us from building any recovery in growth momentum in 4Q or in the immediate future.”

Having similar views, HDFC Securities has projected TCS to post 1.9% revenue growth. The report said that for TCS the key monitors will be BFSI vertical performance, diligenta outlook as headwinds have abated.

Moreover, according Religare Institutional Research report, the analysts believes that TCS and HCL Technologies are poised to lead organic growth among large-caps.