ICICIdirect has come out with its second quarter (July-September) earnings estimates for the information and technology sector. The brokerage house expects Tata Consultancy Services (TCS) to report a 2.6 percent growth quarter-on-quarter (growth of 10.3 percentyear-on-year) in net profit at Rs 5187 crore.
Revenues are expected to increase by 8.8 percent Q-o-Q (up 14.7 percent Y-o-Y) to Rs 24050.8 crore, according to ICICIdirect.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 7.1 percent Q-o-Q (up 2.7 percent Y-o-Y) to Rs 6817.2 crore.
ICICIdirect on Tata Consultancy Services:
USD, rupee revenues could grow 7.5 percent, 8.8 percent to USD 3,971 million, Rs 24,051 crore respectively, while constant currency revenue growth could top 8 percent excluding the 70-80 bps of cross currency impact. Excluding Mitsubishi JV, constant currency organic revenues could grow 5.5 percent Q-o-Q. India business (6.7 percent of FY14 revenues) could continue to surprise positively after a strong Q1 (7.2 percent Q-o-Q growth). EBIT margins could improve 25 bps to 26.5 percent primarily led by rupee even as absence of wage hikes and one-time depreciation impact is offset by JV consolidation charge. Investor interest: Pricing trends, deal pipeline around digital and new technologies, BFSI, retail vertical outlook.
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