Here's a detailed analysis of the Q1 show by information technology major Infosys.
In rupee revenue terms, TCS and Infosys each posted 0.2 percent degrowth.
Tata Consultancy Services (TCS) posted a disappointing performance in Q1 FY18. In an interview to CNBC-TV18, Sandip Agarwal of Edelweiss Financial Services shared his reading and outlook on the same as well as his expectations from Infosys’ Q1 FY18 numbers.
The management had sounded positive while announcing the numbers for March, but that is not showing in the June earnings.
Tata Consultancy Services (TCS) reported a mixed set of numbers for the quarter ended June, 2017. The profits and operational numbers were lower than expected but revenues were in line.
Subdued Q1 earnings numbers are expected for Tata Consultancy Services (TCS) due to a slowdown in the Banking, Financial services and Insurance (BFSI) segment and weak retail business. A rise in visa costs and appreciating rupee are also seen denting margins. In an interview to CNBC-TV18, Ravi Menon, Analyst, IT Services at Elara Capital shared his expectations on the numbers.
In an interview with CNBC-TV18, Urmil Shah, AVP-Research Analyst at IDBI Capital and Karan Taurani, Senior Analyst at Dolat Capital shared their readings and outlook in HCL Technologies'Q4 numbers.
TCS surprised the Street with a positive commentary post results although the numbers in the final quarter of FY17 failed to make an impact.
In an interview with CNBC-TV18, Rajesh Gopinathan, CEO & MD, NG Subramaniam, COO, V Ramakrishnan, CFO and Ajoyendra Mukherjee, Executive VP & Head-Global HR at Tata Consultancy Services (TCS) spoke about the results and gave their outlook for the company.
Revenue in dollar terms is likely to rise 2.1 percent quarter-on-quarter to USD 4479.5 million in Q4.
The North American market accounts for over 62 percent of Infosys' revenue. For the quarter ended March 2017, revenue from this market grew 1.3 per cent sequentially for the company.
Track the latest updates on Infosys Q4 and what the management has to say.
Sector experts welcomed Infosys’ new capital allocation policy announced with its fourth quarter earnings Thursday, but sounded a note of caution on the cut in margin guidance.
HCL Technologies, one of the largest software services providers, reported profit at Rs 2,062 crore on revenue of Rs 11,814 crore for the quarter. Its earnings matched expectations.
Citi has a sell rating on the stock with a target of Rs 2175 per share stating that leadership transition will be key from the company's perspective.
In an interview to CNBC-TV18, Sandip Agarwal, VP-Wholesale Capital Markets at Edelweiss Financial Services spoke about Tata Consultancy Services' Q3 results as well earnings estimates of Infosys for the same quarter.
While the 2 percent sequential growth in third quarter constant currency revenue of Tata Consultancy Services is marginally better than market estimates, most other numbers are largely in line. Experts say the current performance is largely priced in and see no major revisions in the yearly estimates.
Net Sales are expected to increase by 1 percent Q-o-Q (up 8 percent Y-o-Y) to Rs 29473.5 crore, according to KR Choksey.
Speaking to CNBC-TV18, Shashi Bhusan of IDFC Securities said that he expected a weak performance from both TCS and Infosys.
Net Sales are expected to increase by 0.6 percent Q-o-Q (up 7.6 percent Y-o-Y) to Rs 29452.9 crore, according to Motilal Oswal
Software services provider Tata Consultancy Services' (TCS) third quarter earnings are expected to be week on account of seasonality (due to year-end furloughs) and cross currency headwinds. Profit is seen falling 1.5 percent sequentially to Rs 6,489 crore and revenue may grow 1 percent to Rs 29,577 crore in Q3.
Going forward, in one or two quarters Wipro will catch with its peers Infosys and TCS, said Prakash Diwan of Altamount Capital Management.
Sanjiv Bhasin of IIFL and Dolat Capital's Karan Taurani believe that the company's Q2 performance was good and it can outperform peers like TCS and Infosys in the coming quarters.
Overall, Infosys Q2 was better than its rival. IT solutions provider Infosys ' profit beat analysts' expectations, rising 4.9 percent to Rs 3,606 crore in July-September quarter but reduced full year revenue guidance considerably due to uncertain external environment.