TCS Q2 PAT seen up 17% at Rs 4439 cr: KR Choksey
According to KR Choksey, Tata Consultancy Services (TCS) may report a 17 percent growth quarter-on-quarter (growth of 26 percent year-on-year) in net profit at Rs 4,439 crore.
October 15, 2013 / 09:58 IST
KR Choksey has come out with its second quarter (July-September) earnings estimates for the information technology sector. The brokerage house expects Tata Consultancy Services (TCS) to report a 17 percent growth quarter-on-quarter (up 26 percent year-on-year) in net profit at Rs 4,439 crore.
Revenues are expected to increase 16 percent Q-o-Q (up 33 percent Y-o-Y) to Rs 20,802 crore, according to KR Choksey.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 28 percent Q-o-Q (up 49 percent Y-o-Y) to Rs 6,610 crore.KR Choksey's Report on Tata Consultancy Services:Organic revenue growth is expected to be 5 percent Q-o-Q in constant currency supported by broad based momentum in US and increase penetration in Europe. Alti will contribute around Euro 30 million in Q2 FY14E; whereas we expect adverse cross-currency impact to be 85bps Q-o-Q.Rupee depreciation against the major global currencies in Q2 FY14E and one time visa cost in Q1 FY14 will support significant margin improvement.Expect forex loss of Rs 528 crore in Q2 FY14E against forex loss of Rs 70 crore in Q1 FY14.Key factors to watch out for in the result are large deal signing activity, initial indications from clients about next year IT budgeting cycle and strategy of the company about redeployment of benefits arising from rupee depreciation against the major global currencies.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 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!
