On the Sensex, shares of TCS closed up Rs 26.65 at Rs 3,286.95. TCS is the second most valued company on the Sensex with a market capitalization of Rs 12,02,711.89 crore.
In the IT sector’s Q1FY23 preview report, Samir Parthikar, research analyst at ICICI Direct for TCS, said revenue growth should accelerate due to acceleration in contract activity, but margins are expected to be impacted by the annual salary wage revision effective from April 2022.
TCS is expected to post 3% QoQ growth in constant currency due to BFSI, healthcare and retail, acceleration in digital technologies, increase in deals.
Also, the company’s 140 bps cross-currency headwinds should lead to 1.6% QoQ revenue growth in dollar terms.
Key points to watch for earnings – Margin outlook for FY23 is said to include demand outlook in key verticals of BFSI and Retail CPG. While TCS revenue is expected to be Rs 52,533.8 crore in Q1FY23 by 15.7 yoy and 3.8 qoq, PAT is estimated at Rs 9,842.4 crore by 9.3% yoy. But down 0.8% qoq. EBITDA is projected to grow 9.1% yoy to Rs 13,816.4 crore. However 0.2% qoq is less.
Today the company’s board will consider declaring interim dividend to shareholders. The company has set July 16 as the record date for payment of interim dividend. As of March 31, 2022, TCS’s net income stood at Rs 38,327 crore, up 14.8% over the previous fiscal. FY22 revenue rose 16.8% to Rs 1,91,754 crore. At the end of FY22, TCS had 592,195 employees.