TCS, HCLTech Q1 results on July 12: Here’s what you can expect
Tata Consultancy Services is expected to report around 15% year on year growth in net profit, according to an ET poll of analysts, for the first quarter ended on June 30 in a quarter when the company’s margins may be negatively impacted due to the wage hikes. The company will announce its first quarter results on July 12 after market hours.Revenue for the same period is expected to grow 13% year on year in a quarter when the company witnessed a large deal cancellation but also reported multiple large deals.
During the quarter, the company reported major deals from the likes of Nest UK, Standard Life, Marks and Spencers, Ikano Bank and Teacher’s pension among others. Analysts will be watching for commentary on demand in key markets like the UK and US apart from further signs of deal rampdowns or cancellations.
“Demand uncertainty seen in the month of March has continued in the June 2023 quarter. TCS is seeing some project cancellations and postponements.
Some right-shifted projects have started ramping up in June. Europe and the UK are growing well while there is more weakness in North America,” said a report by ICICI Securities.Also read | Future imperfect: how will FY24 pan out for the Indian IT industry Operating margin is expected to be around 23.4%, down 30 basis points over last year and almost 110 bps over the previous quarter weighed down by wage hikes and reduced utilisation from project cancellations.
India’s third largest IT services major HCLTech will also announce results on the same day and is expected to report 17% growth in net profit and 14% growth in revenue over the year for the fiscal first quarter. “(HCLTech’s) ER&D segment was impacted by weakness in hi-tech and telecom verticals in March 2023 for a
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