Brokerage Jefferies expects that there could also be a buyback announcement from the Mumbai-based company. However, the company has not informed anything yet to the exchanges.
Along with TCS, HCL Technologies will also come out with its first quarter report card on the same day. Meanwhile, Infosys will declare its results on July 20.
For the first quarter, the predictions look bleak for IT companies amid an uncertain global environment and muted demand.
Jefferies expects the aggregate revenue to fall by 0.3% quarter-on-quarter in cc terms with Coforge, HCLTech leading on growth.
It also sees aggregate margins to contract by 75 bps QoQ due to a forecast sharp 150-190 bps margin contraction for TCS, TechM and Coforge due to wage hikes.
“We see risk of Infosys lowering top end of guidance by 100 bps to 6% YoY cc and expect a buyback from TCS. The focus will be on guidance, demand outlook, leadership transitions, nature of deals and deal cycles,” Jefferies said.
Meanwhile, Motilal Oswal expects IT companies under its coverage to report a cumulative 5.3% YoY growth in revenue for the June quarter, and a mere 0.4% growth sequentially. The brokerage estimates aggregate profit to drop by nearly 2% sequentially.
Besides a weak June quarter earnings, some analysts also see industry majors Infosys and HCL Technologies cutting the upper end of their sales growth outlook for FY24.
IT companies have reported weak sets of earnings in the preceding quarter and forecasted lower-than-expected numbers for the coming quarters. For instance, Infosys guided for a mere 4-7% growth for FY24 amid an uncertain global environment.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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