TCS, HCL earnings recovery may get further push from AI demand
IT outsourcing firms including Tata Consultancy Services Ltd. and HCL Technologies Ltd. will reveal how the much-awaited recovery is shaping up.
With US and European companies remain weary of spending on new projects, TCS and HCL have clung to outsourcing projects aimed at offering cost savings. TCS results next week should show revenue growth picked up sequentially in the April-June quarter, consensus estimates show.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIT DelhiCertificate Programme in Data Science & Machine LearningVisitMIT xPROMIT Technology Leadership and InnovationVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitUS-listed peer Accenture Plc’s management has indicated the boom in generative artificial intelligence is acting as a catalyst for businesses to rethink and invest in their IT systems. That should create revenue opportunities for firms like TCS and HCL.
Over in Japan, Uniqlo-owner Fast Retailing Co. and Ryohin Keikaku Co., which owns the Muji brand, should both see double-digit operating profit growth in the quarter. Warmer temperatures boosted sales of spring-summer clothing, according to Bloomberg Intelligence.
Highlights to look out for:
Monday: LG Energy Solution’s (373220 KS) second-quarter earnings may disappoint amid lower demand for electric vehicles in Europe, HI Investment & Securities said. Demand from Tesla, a customer for its cylindrical battery, also fell short due to price competition from Chinese EV
