Q2 Results Live Updates: TCS To Report Earnings Soon; Shares Trade Lower
As many as 12 companies, are set to announce their quarterly results for the three months ending September 2024.
TCS Q1 Results: What To Watch Out For
TCS is likely to clock a net profit of Rs 12,543 crore and revenue of Rs 64,186 crore for the quarter ended September, according to a survey of analysts' estimates done by Bloomberg.
Here are the key factors to watch out for in their earnings update:
Reason for the absence of growth, excluding India.
Qualitative commentary for margin and growth guidance.
Revival in the banking space.
TCS Shares Trade Lower Ahead Of Q2 Results
Shares of Tata Consultancy Services Ltd. gave up early gains to trade lower ahead of the IT major's announcement of its second-quarter earnings.
The IT bellwether has cancelled its September quarter earnings press conference and interviews scheduled later on Thursday after the demise of Ratan Tata.
TCS is likely to clock a net profit of Rs 12,543 crore and revenue of Rs 64,186 crore for the quarter ended September, according to a survey of analysts' estimates done by Bloomberg.
TCS stock rose as much as 0.87% during the day to Rs 4,290 apiece on the NSE. It gave up gains to trade 0.63% lower at Rs 4,226.3 apiece, compared to a 0.24% advance in the benchmark Nifty 50 as of 1:19 p.m.
It has risen 16.4% during the last 12 months and has advanced by 12% on a year-to-date basis. The relative strength index was at 42.
Thirty out of the 47 analysts tracking the company have a 'buy' rating on the stock, 10 suggest a 'hold' and seven have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5.6%.
Here's How TCS Fared In Previous Quarter
Tata Consultancy Services reaffirmed its commitment to achieving a margin above 26%, despite experiencing its first contraction in four quarters during the April-June period.
The company aims to maintain margin levels of 26-28%, Chief Financial Officer Samir Seksaria told reporters, adding that margins will increase quarter by quarter. The company last achieved a margin of more than 26% during the fourth quarter of the financial year ending March 2021.
India's largest software services provider reported an EBIT margin of 24.7% for the first quarter of the financial year, down from 26% in the previous quarter. Analysts tracked by Bloomberg had estimated a margin of 24.5%.
Read more here.
Q2 Results Today: GM Breweries Net Profit Falls 3%
GM Breweries Ltd.'s net profit declined in the second quarter of fiscal 2025.
The net profit of the company fell 3.1% year-on-year to Rs 21.7 crore in the quarter ended September. This compares to a profit of Rs 22.4 crore in the same period last year.
Revenue rose 0.2% year-on-year to Rs 149 crore in the July-September quarter.
Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 7,4% year-on-year to Rs 27.5 crore. The Ebitda margin contracted to 18.5% from 19.6% in the previous year.
TCS Shares Trade Higher Ahead Of Q2 Results
Shares of Tata Consultancy Services Ltd. trade higher ahead of the IT major's announcement of its second-quarter earnings.
The IT bellwether has cancelled its September quarter earnings press conference and interviews scheduled later on Thursday after the demise of Ratan Tata.
TCS is likely to clock a net profit of Rs 12,543 crore and revenue of Rs 64,186 crore for the quarter ended September, according to a survey of analysts' estimates done by Bloomberg.
TCS stock rose as much as 0.87% during the day to Rs 4,290 apiece on the NSE. It was trading 0.47% higher at Rs 4,273 apiece, compared to a 0.24% advance in the benchmark Nifty 50 as of 11:55 a.m.
Thirty out of the 47 analysts tracking the company have a 'buy' rating on the stock, 10 suggest a 'hold' and seven have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5.6%.
Macquarie Prefers TCS Over Infosys — Here's Why
Tata Consultancy Services Ltd. is Macquarie's pick over Infosys Ltd. due to better rebound in spending trends after Covid-19 and the global financial crisis.
The stock is the brokerage's top pick among large-cap IT services companies and also a Macquarie Marquee idea, it said while maintaining an 'outperform' rating. The brokerage has a target price of Rs 5,740 per share.
When spending picks up, the brokerage said, it expects more cloud migration deals to be bundled between applications and infrastructure services and sees TCS as better positioned than Infosys.
The brokerage expects the Tata-group company to grow faster than Infosys in both fiscals 2026 and 2027.
TCS Guides For Softer Q2 Earnings
TCS management, while talking to analysts about July-Sept guidance, said that they expect the second quarter to be soft. The growth and deals won in the first quarter are likely fizzling out, according to the management, and that added that the business in North America and BFSI is in bit of struggling mode.
Indian IT companies conduct substantial business with American firms, thus, making them vulnerable to the US economic environment.
Here's What Analysts Expect From IT In Q2
Discretionary demand trends and the green shoots especially in the banking space would be in focus as they contribute to majority of IT companies' revenues.
Even as the July-September period tends to be a strong quarter for the sector, analysts expect TCS to be a laggard, while Infosys Ltd. and LTIMindtree Ltd. are seen leading revenue growth.
The market could find it difficult to support the current valuations of the IT sector, according to CLSA
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TCS Post Earnings Press Conference Cancelled After Ratan Tata’s Death
Tata Consultancy Services Ltd. has cancelled its September quarter earnings press conference and interviews scheduled later on Thursday after the demise of Ratan Tata.
The IT giant, however, will release the Q2 financial results and analyst call on Thursday, Oct. 10, after the board meeting, as decided earlier.
Legendary industrialist Ratan Tata, who served as the chairman of the Tata Group from 1991 to 2012, died on Wednesday at the age of 86.
TCS And Other Salt-To-Software Stocks In Focus After Ratan Tata Demise
Shares of Tata Technology Services Ltd., Tata Motors Ltd., Tata Chemicals Ltd. and group stocks of the conglomerate held steady after its former Chairman, Ratan Tata, passed away on Wednesday.
The chairman emeritus of Tata Sons and a highly regarded Indian industrialist died at the age of 86. He led the Tata Group for around 21 consecutive years between 1991 and 2012.
While being at the helm of expanding one of India's biggest conglomerates, Tata also nurtured several startups when they weren't sector leaders, such as Urban Company, CashKaro, BlueStone, CarDekho and Tracxn.
The scrip of Tata Investment Corp. rose by over 12% in early trade while TRF Ltd. surged 10% on Thursday. Shares of Tata Chemicals Ltd., Tata Elxsi Ltd., and Tata Technologies Ltd. were up by over 3%, each. This compares to a 0.5% advance in the benchmark Nifty 50 as of 10:09 a.m.
The share price of Trent Ltd., and Tinplate Company of India Ltd., declined slightly in trade on Thursday.
Q2 Results Today: TCS Likely To See Soft Business
The Tata-owned IT major told clients that the second quarter will be soft with most business coming in from India, which was 7.5% of total revenue in the first quarter.
CLSA sees further downside to the second quarter sequential revenue growth forecast of 1.8% in constant currency terms, given a sharp ramp up in BSNL contracts post the conclusion of central elections.
Bank of America says that first-quarter demand trends are not expected to carry forward in this quarter, especially for developed markets, like US and UK.
Growth disappointments are possible at TCS, according to Ambit Capital.
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TCS Likely To See Soft Business, Infosys To Increase Guidance — What Analysts Expect From IT In Q2
Q2 Results Today — TCS, Ireda Earnings Estimates
TCS is likely to clock a net profit of Rs 12,543 crore and revenue of Rs 64,186 crore for the quarter ended September, according to a survey of analysts' estimates done by Bloomberg.
Tata Elxsi Ltd. will also be reporting its results for the quarter on Thursday. The company is likely to report a net profit of Rs 200 crore for the second quarter, according to estimates.
Ireda reported a 303% jump in loan sanctions during the first half of FY25, at Rs 17,860 crore, against Rs 4,437 in the year-ago period. The company's loan disbursement grew 56% YoY to Rs 9,787 crore in H1FY25, up from Rs 6,273 crore in the same period a year ago.
Here are the earnings estimates of major companies that are scheduled to announce their results on Thursday:
TCS, Ireda To Kick Start India Inc.'s Q2 Earnings
India's largest IT firm Tata Consultancy Services Ltd., state-owned Indian Renewable Energy Development Agency Ltd. and Tata Elxsi Ltd. will kick-start India Inc.'s earnings season for the second quarter on Thursday.
As many as 12 companies, are set to announce their quarterly results for the three-month period ending September 2024.
Anand Rathi Wealth Ltd., Hathway Bhawani Cabletel & Datacom Ltd., Arkade Developers Ltd., GM Breweries Ltd., Ashoka Metcast Ltd., NB Footwear Ltd., Reliance Naval and Engineering Ltd., Infomedia Press Ltd. and Den Networks Ltd. are set to report their earnings on Thursday.
