TCS FY24-Q4 Earnings: What Are The Markets Expecting?

The Large Cap TATA Group Cash Cow had reported decent Q3 results and is also up by 8% (trading at Rs.4007 a piece) from its Q3 result posting date. The stock has made a 52-week high of about Rs.4254.75 on the 18th of March,2024. The upcoming direction for the stock is heavily dependent on its Q4 Results which are going to be reported today after market hours.

Expectations of Market:

As per the streets, The IT major results are expected to be modest, it may report a low single-digit revenue growth on a QoQ Basis and stable EBIT margins though there have been some operational improvements but limited margins in the Domestic market balance these out. This quarter also includes the BSNL deal.

Market Consensus

Analysts Reporting

Analysts are estimating revenue growth for the IT-GIANT and the Nifty 50 heavyweight is seen higher than its peers like Infosys, HCLTech and Wipro among others due to the ramp-up of the BSNL deal and also a sequential pick-up in the Banking & Financial Services segment.

Analysts estimate that TCS may report a 2.2% QoQ growth in constant currency terms while EBIT margin may be stable, low margins in the Indian Business should compensate for the operational efficiency.

For Q4FY24, TCS may report a 5% YoY growth in overall Revenue and an 8% growth in reported PAT.

Other analysts and firms expect TCS revenue growth in constant currency at 1% for the quarter, The Brokerage expects a nearly 20-Bps expansion in EBIT margin to 25.2%, leading to better utilisation, offsetting lower margins from the BSNL deal.

Conclusion:

The much-awaited Q4 results of the Tech Giant will kickstart the earning season for Nifty 50 companies and will be important in determining the upcoming trend for the Tech Giant and the overall IT industry of the country. Apart from the key numbers, attrition and management commentary on near-term demand will also be in focus.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.