How is TCS Q4 Performance? Complete Insight Q4 Results
Tata Consultancy Services (TCS), the leading software services exporter in India, is all set to unveil its fourth-quarter earnings for FY24 on 12 April. As a trailblazer in the IT sector, TCS is expected to showcase a sequential improvement in performance, primarily driven by the reversal of furloughs.
Analysts anticipate TCS to report a 1.0-1.1% sequential growth in revenue in constant currency terms for the quarter ending March. The resurgence in the crucial banking, financial services, and insurance (BFSI) vertical, coupled with sustained momentum in the manufacturing sector, is likely to bolster TCS’s financial results.
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The company’s Q4 results are projected to be moderate, supported by the expansion of significant deal wins, including the lucrative BSNL deal, despite lingering weaknesses in key international markets. Forecasts suggest that TCS’s Q4 revenue in rupee terms could climb by 1.5% quarter-on-quarter to Rs 61,414 crore, with a predicted 5.8% increase in net profit for the same period. Furthermore, analysts expect the company’s EBIT margin to improve to 25.3% during the January-March quarter.
While TCS’s stock has surged by 4.5% year-to-date, aligning with Nifty 50 returns, it has significantly outperformed the Nifty IT index, which experienced a 0.6% decline over the same period.
How is TCS Q4 Performance? Complete Insight Q4 Results; TCS is poised to lead revenue growth in the upcoming quarter, fueled by ongoing deal wins, the scaling up of major contracts such as the BSNL deal, and the resurgence in the manufacturing and BFSI sectors. Analysts anticipate a robust revenue growth trajectory for TCS, underpinned by the recovery in BFSI and the sustained strength in manufacturing.
The recent mega deal with BSNL, valued at Rs 15,000 crore, has been a significant catalyst for TCS’s revenue growth. Analysts predict a positive Q4 performance for TCS, with expectations of a 1.6% quarter-on-quarter constant currency revenue growth, attributed to the full quarter ramp-up of the BSNL deal, the reversal of furloughs, and the scaling up of other major contracts.
Brokerages remain optimistic about TCS’s ability to secure new deals, with estimates ranging from $7-9 billion in the January-March quarter. The management’s commentary on the FY25 demand environment, particularly discretionary spending, will be closely monitored for insights into future growth prospects.
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Vertical commentary and insights on new deal ramp-ups, visibility in the pipeline, and sector-specific outlooks are anticipated to be key highlights from TCS’s upcoming results. Analysts are keen on understanding TCS’s strategic positioning and growth trajectory, especially in key sectors like BFSI, hi-tech, and manufacturing.
