TCS Quarterly Results 2018: The company will interact with analysts at an earnings conference call soon.Tata Consultancy Services (TCS) today kicked off the June quarter corporate earnings season.
TCS, the country's largest IT services exporter, reported a 23.5 per cent year-on-year (YoY) growth in consolidated profit for June quarter at Rs 7,340 crore, helped by strong growth in its banking, financial services and insurance division.Mumbai-headquartered TCS, which celebrated its 50th anniversary this year, beat the Street's expectations.
The company had posted Rs 5,945 crore profit for the corresponding quarter a year ago.
On a sequential basis, the profit grew 6.31 per cent.Tata Consultancy Services."We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders.
Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum," CEO and managing director Rajesh Gopinathan said.Greater Quarter To Kick Off The Year With, Says CEO Rajesh Gopinathan"We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders.
Our Banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum.
With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future," CEO and MD Rajesh Gopinathan said.
The board of the company announced an interim dividend of Rs 4 per equity share of Rs.
1 each.
The dividend, TCS noted, will be paid out on July 25.TCS reported a 23.5 per cent year-on-year (YoY) growth in consolidated profit for June quarter at Rs 7,340 crore.
In few minutes from now, Tata Consultancy Services will reveal its financial performance in the April-June period.
The release of quarterly earnings will be followed by a press conference at 5:15 pm, in which the TCS management will will address the media.
Check this space for more information."As customers move forward in their Business 4.0 journeys, TCS Is helping them leverage digital technologies to drive their growth and transformation agendas.
The multiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives," TCS chief executiveRajesh Gopinathan had said after release of Q4 earnings.TCS share price declined 0.6 per cent to close at Rs 1,877 on the BSE, underperforming IT stocks.
The Nifty IT, the NSE's sub-index for IT shares, settled0.8 per cent higher.
Shares in Infosys, which is scheduled to release its Q1 earnings this week, finished with a 0.3 per cent gain at Rs 1,302.50.Sensex On Course To Reclaim 36,000 After Nearly 6 MonthsThe Sensex today hit the key 36,000 mark after a gap of five-and-a-half months.
If the index finishes the day above this level, that would be the first since January 23 this year.At 3:16 pm, TCS shares were trading 0.8 per cent lower at Rs 1873.55 apiece on the BSE, whose benchmark index Sensex was up 306 points, or 0.9 per cent, at 36,241.
HDFC Securities expects TCS' EBIT margin to decline 40 bps QoQ to 25 per cent impacted by wage increase.
Edelweiss maintains a 'HOLD' call on TCS shares citing expensive valuations.
IDBI Capital forecasts TCS to report the highest growth among IT companies at 3.2 per cent QoQ but also expects a cross currency headwind of 120 bps to 190 bps, which may offset part of the uptick in CC (constant currency) revenue growth.
Valuations and recommendations snapshot from Edelweiss Securities Limited HDFC Securities estimates TCS Q1 rupee revenue at Rs 33,925 crore, a growth of 5.8 per cent and 14.7 per cent on QoQ and YoY basis respectively.
Edelweiss Securities expects TCS to report a revenue growth of 4.1 per cent QoQ in constant currency terms, driven by ramp-ups in major deal-wins last year.
However, we foresee 100 basis points cross currency impact, bringing down UD dollar growth to 3.1 per cent.
Crisil expects EBITDA margin of IT sector to improve marginally on-year for the quarter ended June.
Dollar depreciation and higher share of digital revenues would aid improvement, it said in a report.
Ahead of Q1 results at 11:51 am, TCS shares are trading at Rs 1,888.15, with a gain of Rs 5.15 or 0.27 per cent on the National Stock Exchange (NSE).
"The momentum is expected to remain strong in all industry verticals, except BFSI, which we believe is likely to turn around in one-two quarters," said Edelweiss on TCS numbers.
Investors need to watch out for TCS' commentary on demand outlook and client budgets in BFSI (banking, financial services and insurance), traction in digital services and growth in Europe and Asia Pacific region, said Edelweiss Securities.
At 10:06 am, TCS shares are trading at Rs 1,889.10 with a gain of 0.08 per cent after opening at Rs 1,895.20 on the Bombay Stock Exchange (BSE).
IDBI Capital forecasts EBIT margin of TCS to decline by 115 basis points QoQ impacted by salary increase partly offset by rupee depreciation.
IDBI Capital has an 'accumulate' call on TCS shares.
HDFC Securities expects TCS to post "strong growth", with a revenue of $5,063 million, which marks a growth of 1.8 per cent and 10.3 per cent on a QoQ and year-on-year (YoY) basis respectively.
IDBI Capital has forecast TCS to report the highest growth among IT firms at 3.2 per cent on a quarter-on-quarter basis (QoQ) driven by ramp-up in large deals secured in FY18.
TCS outperformed peers during fourth quarter of FY 18, according to Edelweiss Securities.
NSE IT outperformed Nifty during fourth quarter of FY18, according to Edelweiss Securities.
HDFC Securities expects TCS to post "strong growth", with revenue of $5,063 million.