Expect constant currency revenue growth of 2.5% on QoQ basis for TCS: Nirmal Bang

Tata Consultancy Services (TCS) will be reporting its Q2 FY18 earnings today. Subdued quarter expected. Cross currency revenue growth seen at 1.5-2 percent.

In an interview to CNBC-TV18, Girish Pai, Head of Research at Nirmal Bang Institutional Equities shared his readings and expectations on the same.

He expects 2.5 percent constant currency growth. We are expecting 3.8 percent dollar revenue growth on a quarter-on-quarter (QoQ) basis, he said.

We need to watch out how the commentary is going to change post Q2. We also have to look at the margin picture, he added.

Utilisation could be a bit of a problem and it should move down in his view. He expects some margin improvement of about 100 basis points (bps), said Pai.

For full interview, watch accompanying video...