India’s largest software services provider Tata Consultancy Services is expected to announce results for July-September quarter on Thursday after market hours. The TCS board is also expected to take a decision on a second interim dividend payout to equity shareholders. TCS announced an interim dividend earlier in July of Rs 7 per equity share and Re 1 each of the firm.
Although the revenues for the quarter ended June were consistent with the company’s expectations, it reported fall in profits and operational figures. It reported a 10 per cent sequential fall in profits to Rs 5,945 crore and revenue dipped by 0.2 per cent to Rs 29,584 crore.
According to HDFC Securities’ Q2 results preview, TCS is expected to post 3.5-3.6 per cent quarter-on-quarter revenue growth. Kotak Securities have estimated the revenue growth of TCS at 2.1 per cent.
While the signs are there for strong growth numbers due to cross-currency gains, shadows of muted results linger due to second quarter yet to witness a notable increase in spending in the retail and banking, financial services and insurance (BFSI) sectors.
The IT sector is in the midst of technological shifts and has been impacted by events like Brexit and US visa norm changes. However, as pound, euro and Australian dollar appreciate against the US dollar, cross currency-movement appears favourable. Nonetheless, the depreciation of rupee against dollar will also be a factor to consider.
The shares of TCS were trading at Rs 2526 around 2:20 pm.