Tata Consultancy Services Ltd (TCS) will commence the earnings season on Friday, January 9, by announcing its Q3 FY25 results and considering the third interim dividend for FY25. If approved, the dividend will be paid to eligible shareholders as of the record date, January 17.
Earnings Preview:
Analysts anticipate a flattish constant currency (CC) revenue growth due to seasonal weaknesses such as furloughs and a reduced contribution from BSNL. Despite this, operating efficiencies are expected to expand margins by 20-40 basis points.
Key Estimates:
- Revenue: Expected at ₹64,138 crore, up 5.9% YoY (₹60,583 crore in Q3FY24), with sequential growth to ₹64,335 crore from ₹64,259 crore.
- Net Profit: Projected at ₹12,299 crore, up 1.4% YoY from ₹12,016 crore, and an increase from ₹11,909 crore QoQ.
- EBIT Margin: Estimated to improve to 24.48% from 24.07% QoQ, supported by cost efficiencies.
- Dollar Revenue: Expected at $7,596 million, reflecting a 0.3% sequential decline and a 4.6% YoY growth.
- EBIT: Anticipated at ₹15,752 crore compared to ₹15,465 crore QoQ.
Other Expectations:
- BSNL’s revenue contribution is expected to add 3% to annual growth YoY but may act as a headwind sequentially.
- Deal wins for the quarter are projected in the $9-10 billion range, indicating robust demand.
TCS’s results will set the tone for the IT sector as the market watches closely for commentary on deal pipeline, demand outlook, and macroeconomic chall
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