Will TCS impress post Infy's dismal performance?
The disappointing January-March quarter results of Infosys' has not dampened spirits of investors and analyts. The street is expecting Tata Consultancy Services (TCS) to outperform Infosys in the fourth quarter results of FY11.
April 21, 2011 / 13:38 IST
The disappointing January-March quarter results of Infosys' has not dampened spirits of investors and analyts. The street is expecting Tata Consultancy Services (TCS) to outperform Infosys in the fourth quarter results of FY11.
India's largest IT software exporter TCS will declare its Q4FY11 results on April 21. According to CNBC-TV18 estimates, it is set to report 0.42% growth in fourth quarter net profit of Rs 2,340 crore as against Rs 2,330.17 crore in previous quarter.In rupee terms, revenues are seen going up by 5.1% to Rs 10,160 crore from Rs 9,663.4 crore. In dollar terms, revenues are likely to go up by 4.9% to USD 2250 million versus USD 2144 million on sequential basis.Earning before interest and tax is expected to go up at Rs 2,795 crore in the fourth quarter as against Rs 2,713.2 crore in previous quarter. In a recent interview with the CNBC-TV18, the management said the discretionary spend improved. TCS is likely to see pricing uptick. Sector like BFSI and retail were strong while telecom growth has been slower than other verticals, says the company.In an earlier interview to CNBC-TV18, CEO N Chandrashekhar said that the compnay is seeing a pricing uptick during the next fiscal year across the board. Chandrashekhar said that the company has increased budget in IT spend to 3-4%. "Overall, the pipeline is good across all industry segments. But financial services, retail and consumer products and utilities are faring better than sectors like telecom," he added.After the Infosys results, CLSA too is expecting TCS to announce superior top line as well as margin performance."The result will put further pressurise Infosys' stock price and valuations in the near to medium term
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