TCS to kick off earnings season with fourth quarter results today; key things to watch

Tata Consultancy Services (TCS), India’s second most valuable listed company, will kick off the earnings season today with its fourth-quarter results. Most brokerage firms expect IT companies to report strong on-quarter growth, building further upon the previous quarter’s best multi-year revenue growth. TCS had recently handed its employees a second salary hike in six months, which augmented analyst’s expectations from the firm amid rapid digitalisation and demand growth. The share price of TCS galloped 11% higher during the January-March quarter.

Revenue growth: TCS is expected to post strong revenue growth in the January-March quarter. ICICI Direct expects TCS to report on-quarter revenue growth of 3.9%. However, Kotak Securities, Edelweiss, and Nirmal Bang expect the company’s revenue growth to be beyond 4%, nearing Rs 43,800 crore against last quarter’s Rs 42,015 crore.