TCS or HCL Tech for short-term after Q1FY24 results? Here is analysts' verdict
Mint reported, before Q1FY24, TCS’s slowest growth at the start of the fiscal year was in the first quarter of 2008, when the global financial crisis sent banks into turmoil, eventually hurting IT services firms like TCS, which expanded its sequential revenue by 0.5 per cent. HCL Tech's earnings failed to meet the expectations of the company as well as of the Street. Commenting on the results, chief executive C.
Vijayakumar said while Q1 is typically a soft quarter for the company with productivity benefits for a large number of contracts kicking in during the quarter, the performance has been “lower than our own expectations". TCS Q1FY24 earnings: IT bellwether TCS reported a 16.84 per cent year-on-year (YoY) rise in its consolidated net profit. But on a quarter-on-quarter (QoQ) basis, TCS' consolidated net profit was down 2.8 per cent.
The company's operating margin decreased from 24.5 per cent in Q4FY23 to 23.2 per cent in Q1FY24, a 130 basis point decline. It increased merely 0.1 per cent year over year. HCL Tech Q1FY24 earnings: HCL Technologies reported a 7.65 per cent YoY rise in the April-June net profit at ₹3,534 crore.
On a QoQ basis, the company's profit after tax (PAT) declined by 11.27 per cent. Consolidated revenue from operations jumped by 12.06 per cent to ₹26,296 crore in Q1FY24, as against ₹23,464 crore in Q1 of FY23. However, revenue dipped marginally by 1.2 per cent on a sequential basis.
Revenues grew 6.3 per cent from a year earlier in constant currency (CC) terms. TCS and HCL Tech share price: IT stocks have been under pressure for over a year now on concerns over demand slowdown in key markets in the US and Europe. Shares of TCS have gained just about 8 per cent against a nearly 20 per cent gain
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