TCS Q1 net may grow 7% at Rs 3857.8 cr: Emkay
Emkay Equity Advisory expects Tata Consultancy Services to report a 7.3 percent degrowth quarter-on-quarter (growth of 17.6 percent year-on-year) in net profit at Rs 3857.8 crore.
July 18, 2013 / 13:44 IST
Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for technology sector. The brokerage house expects Tata Consultancy Services to report a 7.3 percent degrowth quarter-on-quarter (growth of 17.6 percent year-on-year) in net profit at Rs 3857.8 crore.
Revenues are expected to increase by 8.2 percent Q-o-Q (up 19.6 percent Y-o-Y) to Rs 17775.8 crore, according to Emkay Equity Advisory.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 10.1 percent Q-o-Q (up 18.4 percent Y-o-Y) to Rs 5131.6 crore.Emkay Equity Advisory report on Tata Consultancy ServicesWe expect TCS to lead in terms of revenue growth with a 3.5 percent Q-o-Q growth with 50 bps cross currency headwinds Q-o-Q. Margins are expected to improve by 50bps sequentially on a reported basis despite wage increments aided by currency depreciation (Mar'13 qtr margins were impacted by one time costs of USD 30 million of one off costs related to employee lawsuit settlement). Profits expected to increase by 7.2 percent Q-o-Q aided by strong EBITDA performance. Key things to watch out for (1) commentary on demand outlook from US and Financial Services, (2) outlook on margins (3) contingency measures with regards to the stiff Immigration policies emerging across geographies. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
