TCS Q4 PAT seen down 1.7% at Rs 2,837 cr

Country's largest software services exporter Tata Consultancy Services (TCS) is set to report its quarterly earnings today evening. CNBC-TV18 poll expects the company to report profit after tax of Rs 2,837 crore in the fourth quarter of financial year 2011-12, degrowth of 1.7% as compared to Rs 2,886.6 crore in the previous quarter.

Earnings before interest and tax (EBIT) is likely to fell by 4.84% to Rs 3,675 crore in the quarter ended March 31, 20112 from Rs 3,861.8 crore in the earlier quarter. EBIT margin is seen falling by 139 basis points at 27.85% versus 29.24% QoQ.

Revenues are expected to be flat at Rs 13,195 crore versus Rs 13,204 crore during the same period.

For the financial year 2011-12, the company's revenues are likely to grow by 30.8% YoY to Rs 48,829.5 crore and profit after tax to increase by 21.4% to Rs 10,542.8 crore.

EBIT is expected to jump by 30% YoY to Rs 13,517.1 crore and EBIT margin is seen declining at 27.68% versus 27.8% while its rival Infosys reported EBIT margin at 29% for full year.

Key points to watch out for:

Expectations have been tempered by the management in March – sluggish Q4 probably priced in. This might be the third consecutive quarter of no material operating performance from TCS

BFSI pressure? (Contribution to revenues highest at 43%) (Infosys' fell 5% and HCL Tech's down 4.1% in constant currency (CC)). BFSI grew only 1.9% in Q3 which is lower than company average