Tata Consultancy Services (TCS), India's largest software services exporter, will announce its third quarter (October-December) earnings on Thursday. Analysts expect the company to report better than peers' results in the quarter ended December 2013 as it has beeen delivering quarter-after-quarter top of the class financial results.
According to CNBC-TV18 poll, profit after tax is expected to grow 10.2 percent sequentially to Rs 5,179 crore during October-December quarter.
Experts feel TCS is again likely to lead the sector on dollar revenue growth in the quarter ended December 2013. Constant currency growth is expected to be 2.5 percent as third quarter is seasonally weak due to furloughs, fewer working days and employees going on vacation.
Earlier in December, the management had said in analyst meet that there are no aberrations on a year-on-year basis, suggesting a typical seasonally weak quarter.
Analysts expect revenues of the company to increase 1.9 percent quarter-on-quarter to Rs 21,373 crore while dollar revenues may jump 3.3 percent to USD 3450 million in the quarter gone by.
Revenue growth will be volume-driven, while pricing is unlikely to impact revenue growth meaningfully. Meanwhile, its rival Infosys has seen dollar revenue growth of 1.65 percent and EBIT margin growth of 150 bps to 25.02 percent.
Earnings before interest and tax (EBIT) of TCS is likely to grow 0.8 percent Q-o-Q to Rs 6,380 crore, but EBIT margin may decline marginally to 29.85 percent from 30.17 percent during the same period due to rupee appreciation and lower utilisation (due to holiday season).
Investors will closely watch the commentary as TCS CEO Natarajan Chandrasekaran, in Decembe, had already talked about FY15 growth being better than FY14 due to uptick in client spending in the US and Europe.
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