ICICIdirect.com has come out with its third quarter (October-December) earnings estimates for the information & technology sector. The brokerage house expects Tata Consultancy Services (TCS) to report a 9.3 percent growth quarter-on-quarter (up 44.7 percent Y-o-Y) in net profit at Rs 5,139.8 crore.
Revenues of Tata Consultancy Services are expected to increase by 1.6 percent Q-o-Q (up 32.6 percent Y-o-Y) to Rs 21,306.3 crore, according to ICICIdirect.com
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 1.1 percent Q-o-Q (up 44.2 percent Y-o-Y) to Rs 6,712.1 crore.
ICICIdirect.com on TCS:
USD, rupee revenues could grow 3 percent, 1.6 percent Q-o-Q to USD 3,437 million, Rs 21,306 crore, respectively. Constant currency revenues could grow between 2.5-3.5 percent vs 6 percent in Q2.
Soft revenue growth is due to seasonal factors particularly furloughs across service lines. EBIT margins could decline 37 bps Q-o-Q to 29.8 percent largely due to rupee appreciation but could be flat in constant currency. Investor interest: Pricing, CY14E budgeting cycle and discretionary spend trends.
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