TCS Q1: Wage hikes, rupee may dent profit; BFS growth eyed

NEW DELHI: IT major Tata Consultancy Services (TCSNSE -2.66 %) is expected to report a 2.5-3.2 per cent quarter-on-quarter (QoQ) rise in revenue growth in constant currency (CC) terms. Profit is expected to drop 4-6 per cent sequentially while margins are seen falling 90-150 basis points, led by wage hikes and rupee appreciation.

The management commentary on banking and finance (BFS) space, sub-contractor expenses and any visibility on double-digit growth in FY20 would be keenly tracked.

Motilal Oswal Securities expects TCS to report Rs 7,670 crore profit, down 5.6 per cent QoQ.