The first quarter earnings from Tata Consultancy Services (TCS) are expected to be sudued 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 will also dent margins.
In an interview to CNBC-TV18, Ravi Menon, Analyst, IT Services at Elara Capital shared talks about earnings expectations and the outlook for IT companies going forward.
He said , every year people expect growth to come down for IT, which is factored in the price but does not agree.
He expects 8.8 percent growth for TCS in FY18 and for Q1, he sees 3.2 percent growth in dollar terms and 2.5 percent in constant currency terms.
Commentary about BFSI, from management, will be very important, he said.
He prefers Infosys over TCS because of the valuation gap.
For full interview, watch accompanying video...
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