Cross-currency headwind is likely to impact performance of TCS in the quarter ended March. The IT major's net profit may grow 2.1 percent at Rs 6240 crore in Q4 from Rs 6109.5 crore in quarter-ago period.
According to a CNBC-TV18 poll, TCS Q4 dollar revenue is expected to increase 1.4 percent at USD 4205 million compared to USD 4145 million on sequential basis. In rupee terms, revenue may grow 3.6 percent at Rs 28345 crore versus Rs 27364 crore quarter-on-quarter. Revenue is seen up 1.7-1.8 percent in constant currency.
During the quarter, EBIT may stand at Rs 7628 crore versus Rs 7276.2 crore quarter-on-quarter. In percentage terms, Q4 EBIT may be at 26.9 percent versus 26.6 percent (QoQ).
Analysts polled by CNBC-TV18 feel TCS's cross-currency headwind from 14-15 percent exposure to British pound (depreciated 5.5 percent versus dollar) will be partly offset by about 4 percent exposure to Japanese yen (appreciated 5 percent versus dollar).
In Q4, margin is likely to improve on 2.3 percent rupee depreciation. Analysts also feel that TCS may see revenue tailwinds including reversal of lost income from Chennai and extra working day due to leap year. Its attrition level in Q4 will be keenly watched.
TCS's FY16 growth is seen below Infosys and even for FY17. In constant currency terms, FY16 revenue growth is estimated at 7 percent in FY16 versus 9.1 percent of Infosys. TCS is likely to trail Infosys even in FY17.
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