TCS Q4 Results Preview: Revenue, PAT may see modest growth; commentary on near-term demand key monitorable
Q4 results preview: IT sector likely to report muted revenue growth with stable margins; all eyes on FY25 guidance Apart from the key numbers, trends on deal winds, attrition and management commentary on near-term demand will be under focus. Brokerage firm Motilal Oswal Financial Services expects TCS' deal pipeline to remain resilient in the UK regions, but the US and Europe may continue to stay weak. As per Motilal's estimates, TCS may report a 2.2 per cent QoQ growth in constant currency (CC) terms while EBIT margin may be stable, as operational improvements should be compensated by low margins in the India business.
Also Read: Q4 results: Largecaps may give some surprises in FY25 For Q4FY24, TCS may report a 5 per cent year-on-year growth in overall revenue and an 8 per cent growth in reported PAT, according to Motilal Oswal. CA Vatsal Vinchhi, an equity analyst for the IT sector at Choice Equity Broking expects a marginal sequential growth for TCS on the back of a strong order book in the BFSI segment. "It is expected to report about 1 per cent CC QoQ growth amidst delayed discretionary spending.
Margins are expected to remain resilient and to be in the range of 24-25 per cent, however, the aspirational range is 26-28 per cent going ahead," said Vinchhi. Also Read: Q4 results preview: Top-line, profit of India Inc. may moderate, say experts; domestic cyclical to lead Santosh Meena, Head of Research at Swastika Investmart expects a modest single-digit growth for TCS in Q4 FY24.
"Net profit is estimated to rise 5-6 per cent year-on-year, with sales growth around 2 per cent. EBIT margin might see a sequential expansion of 20–40 basis points. The BSNL deal's impact and overall Total Contract Value (TCV) will be key
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