The brokerage firm forecasts profit after tax (PAT) of ₹11,500 crore and revenue of ₹60,270 crore for the second quarter of FY24. Earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be ₹14,446 crore at a margin of 24%.
Another brokerage, JM Financial, expects TCS to post currency-neutral revenue growth of 1%, with cross-currency headwinds of 20 basis points, translating to dollar revenue growth of 0.8% quarter-on-quarter. EBIT margin is expected to increase by 55 basis points, driven by lower subcontract costs, better utilization and currency benefits.
“We expect reported transaction TCV to be healthy, as evidenced by some recent large contract deals,” it added.
In the first quarter of fiscal 2024, TCS posted a 16.8% year-on-year growth in consolidated net profit at ₹11,074 crore in the April-June quarter of the current fiscal, while it grew 2.8% year-on-year at ₹11,392 crore in the April-June quarter of the current fiscal March 2023 declined. Operating revenue rose 12.6% YoY to ₹59,381 crore while it declined marginally by 0.37% from ₹59,162 crore in Q4FY23. The company’s board also declared the first interim dividend of ₹9 per share for the current financial year.
In U.S. dollar terms, revenue increased 7% from the prior-year quarter to $7,226 million while remaining flat sequentially, slightly below consensus estimates of 0.2% sequentially at constant exchange rates (CC). lay.
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