The result season for India Inc. will officially begin today with the release of the quarterly earnings for the June 2023 quarter from Tata Consultancy Services (TCS) and HCL Technologies.
Att attrition, deal wins, management comments, and the announcement of an interim dividend would be the primary red flags to watch out for, in addition to revenue, bottom line, and margin expansion.
Market analysts anticipate that Indian IT firms will report another quarter of flattish revenue growth, though sequential margin improvement is possible. They predicted that more businesses would stick to their forecasted revenue growth for FY24.
We anticipate TCS to post subdued revenue growth for the quarter, in keeping with the generally gloomy climate of the IT sector. According to Dhruv Mudaraddi, Research Analyst at Stoxbox, slower transaction pipeline conversions and project delays/cancellations, this quarter directly affected the company’s growth trajectory. Margin expansion was another important factor.
TCS is expected to announce sales of Rs 59,610.4 crore, up 13% YoY and unchanged on a quarterly (QoQ) basis, and profit of Rs 10,901.4 crore, up 14% YoY but down 5.2% QoQ, according to Antique Stock Bookings. However, it projects HCL Tech’s revenue to be 26,961.4 crores, up 15% YoY and 1.3% QoQ, and its profit to be 3,912.5 crores, up 19% YoY.
According to Kotak Institutional Equities, TCS would report revenue of Rs 59,355.7 crore, up 13% net YoY, and net profit of Rs 10,983.3 crore, up 16% YoY but down 4% QoQ. HCL Tech’s sales are predicted to increase by 15% YoY to $26,963.2 crore, while profit is predicted to be $3,886.7 crore, up 18% cent YoY but down 2% QoQ.