TCS Q2 Results Preview: IT major to report muted earnings growth; share buyback in focus

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Also Read: Earnings preview: Indian IT firms to report soft numbers in Q2FY24; revenue, profit likely to be muted As far as TCS is concerned, the IT major is expected to deliver 0.5% revenue growth in constant currency terms and 0.3% USD growth, on a sequential basis. The brokerage expects TCS to report total revenue of ₹59,904.6 crore in Q2FY24 as compared to ₹59,381 crore in the June quarter. In USD terms, the company is likely to post revenue of $7,246 million as against $7,226 million, QoQ.

TCS net profit in the second quarter of FY24 is expected to rise by 1.1% to ₹11,193.4 crore from ₹11,074 crore in the previous quarter. Earnings before interest and tax (EBIT), or the operating profit, during the quarter is estimated to grow 2.2% sequentially to ₹14,052.8 crore from ₹13,755 crore. Analysts expect TCS’ margins to improve by 30 bps to 23.5% from 23.2%, QoQ, on the back of wage hike normalisation given in Q1.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Meanwhile, commentary around BFSI, Retail, Telecom and Technology will be keenly watched - as TCS likely has the highest exposure in the Tier-1 set with deep relationships developed over the past several decades in both US as well as Europe. Moreover, TCS board will also consider a proposal for share buyback in its meeting on October 11. This will be its fifth share buyback in six years.