LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » Companies News

Q2FY18: What do analysts expect from TCS?

TCS disappointed analysts expectation by witnessing drop of 5.85 in consolidated net profit to Rs 5,950 crore in Q1 versus Rs 6,318 crore during the same period last year.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Q2FY18: What do analysts expect from TCS?
The Tata Consultancy Services headquarters. Photo: Official Website
Written By: ZeeBiz WebTeam
Updated: Thu, Oct 12, 2017
01:42 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
TCS reported a strong quarter with beat on revenues and margins TCS reported a strong quarter with beat on revenues and margins
TCS Share Price: Strong Performance in Q3, Management gains market share on strong demand outlook TCS Share Price: Strong Performance in Q3, Management gains market share on strong demand outlook
TCS Share Price: Details of the Q3 results Decoded by ICICI Securities TCS Share Price: Details of the Q3 results Decoded by ICICI Securities
TCS share price soars 7.5 pct on Buyback news; will results beat analysts’ estimates? Check preview ahead of Q2 FY21 earnings TCS share price soars 7.5 pct on Buyback news; will results beat analysts’ estimates? Check preview ahead of Q2 FY21 earnings
TCS CEO & MD Salary: Rajesh Gopinathan's pay package slashed by Tata Consultancy Services TCS CEO & MD Salary: Rajesh Gopinathan's pay package slashed by Tata Consultancy Services

Share price of IT-giant Tata Consultancy Services (TCS) jumped more than 1% on stock exchanges ahead of it's result for second quarter ended September 30, 2017. 

At 1318 hours, the company's stock was trading at Rs 2518 per piece above Rs 17.50 or 0.70% on BSE. 

In Q1FY18, TCS witnessed a drop of 5.85% in consolidated net profit, at Rs 5,950 crore versus Rs 6,318 crore during the same period last year. Net income in Q1FY18 stood at Rs 5,945 crore, a decline of 5.9% on year-on-year basis. 

Total employee strength at the end of Q1 was 3,85,809 on consolidated basis with gross addition of 11,202 and net addition of 1,414 employees during the employees. 

Ashish Chopra and Sagar Lele, analysts at Motilal Oswal said, "Revenue growth for TCS has been dragged lower by the softness seen in BFS and Retail. Although it has been seeing a pick-up in insurance and emerging verticals, pressure points have been restricting growth."

The duo expects  a continuation of these factors to result in capped seasonal strength, leading to 3.2% QoQ (quarter-on-quarter) USD revenue growth.

Madhu Babu, analyst at Prabhudas Lilladher provided similar projection for TCS's revenue growth. He added,"Cross‐currency would be a tailwind of ~140bps for the quarter owing to
appreciation of GBP/Euro/AUD/CAD v/s USD."

On BFSI segment, Babu added, "TCS has cited that BFSI vertical (~33% of total revenues) traction has been slower than its earlier expectations. Retail vertical (~12.2% of total revenues) has shown tepid performance in FY17 and we expect the same to continue to FY18 as well."

Traction in Digital Business which accounts for 18.9% of company’s revenues would also be watched. 

At the same time, EBIT (earnings before interest tax) is estimated at 24.2% (+80bp QoQ), yet below the lower end of the guided range of 26-28%. 

Thus, profit after tax (PAT) has been forecasted at Rs 6400 crore higher by 7% on qoq but lower by 3.4% on yoy basis. EBITDA growth is seen at Rs 7872 crore this Q2.

While investors were boosting the TCS share ahead of Q2, it's rival Infosys was facing selling pressure. The Infosys share price was trading at Rs 921 per piece down by 1.03%.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Tata Consultancy ServicesTCS Share PriceTCS Q2FY18tcs financial performanceTCS net profitTCS cross-currency revenueTCS guidanceQ2FY18IT
RELATED NEWS
TCS reported a strong quarter with beat on revenues and margins TCS reported a strong quarter with beat on revenues and margins
TCS Share Price: Strong Performance in Q3, Management gains market share on strong demand outlook TCS Share Price: Strong Performance in Q3, Management gains market share on strong demand outlook
TCS Share Price: Details of the Q3 results Decoded by ICICI Securities TCS Share Price: Details of the Q3 results Decoded by ICICI Securities
TCS share price soars 7.5 pct on Buyback news; will results beat analysts’ estimates? Check preview ahead of Q2 FY21 earnings TCS share price soars 7.5 pct on Buyback news; will results beat analysts’ estimates? Check preview ahead of Q2 FY21 earnings
TCS CEO & MD Salary: Rajesh Gopinathan's pay package slashed by Tata Consultancy Services TCS CEO & MD Salary: Rajesh Gopinathan's pay package slashed by Tata Consultancy Services

LATEST NEWS

Warning for bank account holders! Do this fast or you may be badly affected - check IDBI Bank notification

Budget 2021: Big announcement? PM-KISAN samman nidhi yojana scheme list benefits may be hiked from Rs 6,000 to Rs 10,000

LG K42 price, features, specifications here | Important freebies, warranty, unique details here

Actress Priyanka Chopra shares a secret about her late night talk show appearances

Stock Market Tips by Anil Singhvi: Market Guru unveils this money making strategy for massive profit

We expect that pharma and agro-business segments will grow at about 15% CAGR: Tarak Patel, GMM Pfaudler

PUBG Mobile India rival FAU-G crosses 4 million pre-registrations ahead of release| Check launch date, trailer and other updates here

M&M would list 8 of 10 growth champs in next three years: Dr. Anish Shah, Deputy MD and Group CFO

IBPS Clerk Result 2020-21: Prelims cut off declared! Check score card, latest update at ibps.in

Sony WH-1000XM4 Review: For those who don't compromise with quality

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved