TCS share price: Tata Consultancy Services (TCS) shares were stuck in a narrow range around the flatline on Wednesday as investors awaited the Tata group IT major — India's largest IT company — to kick off the corporate earnings season later in the day. TCS shares reversed course after making a mildly positive start to the day, declining by as much as Rs 8.1 or 0.2 per cent to Rs 3,263.8 apiece in morning deals on BSE. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Tata Consultancy Services' upcoming earnings report will be the first under the IT giant's new CEO, K Krithivasan.

Analysts will track the TCS results closely for clues on demand trends for the domestic IT space, where higher employee costs — in a bid to tackle elevated levels of attrition —  have been eating into margins despite robust demand for technology. 

TCS to kick off earnings season; here's what to expect

According to Zee Business research, TCS is expected to report a net profit of Rs 10,900 crore for the April-June period, which translates to a decline of 4.3 per cent on a quarter-on-quarter basis — in contrast to a five per cent rise for the previous quarter. Its revenue is estimated to grow 0.8 per cent sequentially, in rupee as well as dollar terms, to Rs 59,650 crore and $7,250 million respectively.

The analysts peg its margin for the June quarter at 23.3 per cent, as against 24.5 per cent for the previous three months. 

While scrapped and delayed projects are likely to come in the way of revenue growth, higher wage expenses are expected to cause margin pressure for the company, according to Zee Business research. 

ALSO READ: Five key things to watch out for in TCS Q1 results

How TCS fared in Q4

Tata Consultancy Services reported a net profit of Rs 11,390 crore for the quarter ended March, missing analysts' estimates. Its dollar revenue increased more than 1.5 per cent sequentially to Rs 59,162 crore or $7,195 million for the three-month period, and revenue growth in constant currency terms stood at 10.7 per cent. 

stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.