TCS Q4 preview: Covid-19 likely to hit most verticals; FY21 outlook key

Tata Consultancy Services (TCS) is scheduled to release its financial results for the March quarter of the fiscal year 2019-20 (Q4FY20) on Thursday. Analysts see some erosion in the company’s revenue due to the nationwide lockdown that kickstarted in March. Further, owing to Covid-19 impact, which has led to a steep negative impact on the macroeconomy, they expect headwinds in most of its verticals.

On a sequential basis, Edelweiss Securities expects 0.7 per cent decline in TCS’ revenue growth in constant currency (CC) terms. In dollar terms, the company is expected to post 0.6 per cent quarter-on-quarter (QoQ) decline in revenue at $5,554 million. On year-on-year (YoY) basis, the revenue is expected to rise 2.9 per cent.