October 12, 2016 / 17:50 IST
Kotak Securities has come out with its second quarter (July-September) earnings estimates for the Technology sector. The brokerage house expects
TCS to report net profit at Rs 6231.1 crore, down 1.4 percent quarter-on-quarter.
Net Sales are expected to increase by 1.1 percent Q-o-Q (up 9 percent Y-o-Y) to Rs 29614.3 crore, according to Kotak Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 3.2 percent Q-o-Q (up 3.4 percent Y-o-Y) to Rs 8086.2 crore.
Kotak Securities' report on TCSWe expect constant-currency (c/c) revenue growth of 2.4% and cross currency headwind of 90 bps (led by 8% depreciation of GBP offset by 5% appreciation of JPY versus USD).We expect EBIT margin to improve 45 bps qoq on normalization of wage hikes in the previous quarter partly offset by cross currency headwind. We do not assume any forex gain in our model. Note that, forex gain in the June 2016 quarter was Rs 3 bn.
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