Historically, December quarter is seasonally weak for the information technology sector, but this time around, companies have likely witnessed a stronger winter chill.
TCS vs Infosys: Sharekhan expects Infosys to report 8 per cent drop in net profit while it sees the Tata group's TCS clocking 8.2 per cent profit growth.
The third quarter of the current fiscal year is expected to be lean for the IT companies. “We expect that deal booking momentum would show quite a moderation as a result of concerns around economic growth in the US/European markets,” stated YES Securities in a preview report.
TCS Q3 Preview: PAT growth will likely be lower this time as against a 10.98% YoY increase the company reported during the December quarter last fiscal. On a sequential basis, the net profit is expected to grow 0.6%, as higher-than-usual furloughs are set to offset growth in Q3FY24.
Information technology (IT) major Tata Consultancy Services (TCS) will kick off the December quarter earnings season for large-cap firms on Friday, January 8, when it will announce its quarterly numbers. The Tata Group company is likely to post a robust performance for the third quarter of the financial year 2021 (Q3FY21) on the back of strong demand in cloud adoption, tailwinds of large digital deals, project ramp-up and lower furloughs, believe analysts. The board will also consider the declaration of a third interim dividend to the equity shareholders. The IT firm s revenue in constant currency (CC) terms is expected to rise in the range of 2.4-4 per cent on quarter-on-quarter (QoQ) basis while it may grow between 3-4.5 per cent in dollar revenue. As for revenue growth in rupee terms, it is expected to be up between 3.4-5 per cent year-on-year (YoY) and 2.7-4.2 per cent quarter-on-quarter (QoQ). Besides, analysts expect TCS to post a 3-8 per cent year-on-year (YoY) growth in