 |
|
Tata Consultancy Services (TCS), India's largest software exporter, is set to announce its quarterly results for the second quarter of fiscal year 2025 (Q2FY25) on Thursday, October 10th. Ahead of the announcement, TCS's share price traded flat on the National Stock Exchange (NSE), reflecting investor anticipation for the company's performance during the period.
Analysts are optimistic about TCS's performance, with expectations for a 2.1% sequential increase in revenue, reaching Rs 63,938 crore. This translates to a 7.1% year-on-year (YoY) growth. Additionally, the company's profit after tax (PAT) is projected to grow by 3.2% sequentially and 9.5% YoY. These projections suggest that TCS is likely to maintain its strong financial performance despite potential headwinds in the global IT sector.
However, analysts from Motilal Oswal anticipate a slight decline in margins, attributing this to increased investments in talent development and training, along with the ramp-up of the BSNL deal. Despite the anticipated margin pressure, TCS remains committed to its growth strategy, as evidenced by its plan to hire 40,000 freshers in fiscal year 2025 (FY25) and the resumption of lateral hiring after a one-year pause. The company has also implemented a five-day office work policy.
Looking at the long-term performance of TCS, its share price has risen by 12.10% in 2024 so far and 17.71% in the last year. However, the benchmark Sensex has outperformed TCS, delivering a 23.61% return during the same period. The upcoming Q2 results will be crucial for understanding TCS's future trajectory and its ability to maintain its market leadership in the competitive IT landscape.
Source: TCS share price trades flat ahead of quarterly results announcement