TCS Q3 Results Today: Shares Rise Ahead Of Q3FY25 Earnings; Should You Buy? – News18
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Tata Consultancy Services (TCS) shares are currently in positive territory after briefly dipping into the red at the market open
TCS will declare its Q3 financial results on Thursday.
Tata Consultancy Services (TCS) shares are currently in positive territory after briefly dipping into the red at the market open on Thursday, as the company gears up to announce its Q3 results.
TSC Share: Target Price
Brokerage estimates suggest that TCS is expected to report revenues between Rs 63,929 crore and Rs 64,564 crore, with the average expectation being Rs 64,218 crore. This indicates a year-on-year (YoY) growth of 6.32-6.57% and a quarter-on-quarter (QoQ) change ranging from -0.51% to 0.47%. For profitability, net profit is expected to be between Rs 12,029 crore and Rs 12,653 crore, averaging Rs 12,308 crore. This suggests a YoY growth of 8.78-14.42% and a QoQ improvement of 1.01-6.25%.
In the previous quarter (Q2 FY25), TCS reported a revenue of Rs 64,259 crore and a net profit of Rs 11,909 crore. In Q3 FY24, revenue was Rs 60,583 crore and net profit was Rs 11,058 crore.
Brokerages such as Macquarie, BNP Paribas, and Bernstein have maintained an Outperform rating on the stock with target prices of Rs 5710, Rs 4850, and Rs 4820, respectively. Meanwhile, Motilal Oswal, Jefferies, and IIFL have a BUY rating with target prices of Rs 5000, Rs 4775, and Rs 4600, respectively.
Technical Charts
Sagar Shetty, Research Analyst at StoxBox, anticipates that TCS will likely see muted revenue growth, primarily due to the impact of furloughs. Additionally, the revenue contribution from the BSNL deal is expected to taper off, which may further affect overall revenues. However, the reduced impact from the BSNL deal could lead to improved EBIT margins. Margin growth will be supported by operational efficiency, favorable currency movements, and the absence of a wage hike (the last adjustment was in Q1FY25). Investors will closely watch management’s commentary on the deal pipeline, particularly in terms of large-scale deals, as well as insights into the overall demand environment.
Results Preview
TCS, India’s IT giant, is expected to report a year-on-year revenue growth of 5.2% to 6.4% for Q3FY25. Revenue is expected to range between Rs 63,710 crore and Rs 64,500 crore for the quarter ending December 31, according to estimates from four brokerages.
For the bottom line, Motilal Oswal Financial Services (MOFSL) projects an 8.1% adjusted profit after tax (PAT) growth in Q3FY25, the highest among the estimates received. Elara Capital expects a 10% YoY growth in adjusted PAT.
Other brokerages, including Nomura, JM Financial, and Kotak Institutional, also contributed estimates.
Growth on a sequential basis in constant currency terms might remain subdued due to factors like furloughs and currency fluctuations.
Market participants will closely watch TCS’ commentary on growth prospects, new deals, and trends in the banking, financial services, and insurance (BFSI) sector, as these remain key factors influencing the outlook.
TCS To Announce Interim Dividend
TCS is set to announce a dividend for its shareholders on January 9, 2025 (Thursday), coinciding with the release of its fiscal third-quarter earnings report. In a regulatory filing dated December 31, TCS stated, “In accordance with Regulation 29(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that the Board of Directors of Tata Consultancy Services Limited will meet on Thursday, January 9, 2025, to consider, among other matters, the declaration of a third interim dividend for equity shareholders.”
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
