TCS Q4 results preview: Profit may fall marginally, H2 outlook eyed

NEW DELHI: The largest domestic IT firm TCSNSE -0.81 % is expected to report a marginal sequential fall in fourth quarter profit on a 0.5-2 per cent rise in sales. Margins are seen falling by up to 40 basis points QoQ. The IT major is slated to announce its March quarter results on Thursday.

Investors would keenly follow the management commentary on client discretionary spends and pricing pressure. They may also want to hear more on the company’s H2FY21 outlook, as the first six months of the year are expected to see the impact of the ongoing coronavirus outbreak.

Brokerage Edelweiss expects the IT major to report a 0.7 per cent fall in sales sequentially in constant currency terms. It expects profit to fall 0.3 per cent QoQ (0.4 per cent YoY) to Rs 8,095.40 crore from Rs 8,118 crore QoQ (Rs 8,126 crore YoY). Sales in rupee terms are seen rising 1.6 per cent QoQ (6.5 per cent YoY) to Rs 40,477 crore.