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Business News/ Companies / Company Results/  Q1FY24 Results Highlights: TCS, HCL Tech shares in focus tomorrow after muted June quarter earnings

Q1FY24 Results Highlights: TCS, HCL Tech shares in focus tomorrow after muted June quarter earnings

Q1FY24 Results: IT majors Tata Consultancy Services (TCS), India's largest software services exporter, and HCL Technologies announced their June quarter results today, kickstarting the Q1FY24 earnings season! Stay tuned for the live updates on Q1 results.

Q1FY24 earnings season kickstarted today with IT majors TCS and HCL Tech reporting their quarterly results. (Pixabay)Premium
Q1FY24 earnings season kickstarted today with IT majors TCS and HCL Tech reporting their quarterly results. (Pixabay)

Q1FY24 earnings: TCS reported a 16.84 per cent year-on-year rise in its consolidated net profit (attributable to shareholders of the company) for the fiscal's first quarter ended June (Q1FY24) to 11,074 crore. HCL Tech reported 7.6 per cent year-on-year growth in consolidated net profit in the first quarter of fiscal 2024 ended on June 30, 2023. Both tech players missed Street estimates with lower hirings during the quarter, even as the attrition rate declined in the last 12 months declined for both companies.

12 Jul 2023, 08:03:33 AM IST

TCS Q1 Results Live: What to expect in Q1 of FY24 from TCS?

According to Nirmal Bang, TCS is expected to report revenue growth of 1.0% QoQ on a CC basis, backed by strong order inflow of the last 12 months (consisting of large and mid-sized deals). It is likely to face a cross-currency tailwind of ~45 bps on a QoQ basis.

Further, the brokerage thinks the company's EBIT margin will contract by 90 bps QoQ, primarily due to salary increases effective 1 April that it has implemented. Higher Travel, facilities, and S&M costs may pressure margins. Somewhat offset by higher utilization, pyramid benefits, and lower subcon.

However, Nirmal Bang believes in Q1 the TCV will be flattish to higher largely due to the 15,000 crore order win from BSNL.

The brokerage continues to maintain TCS as its industry valuation benchmark. It said, “we are valuing TCS at target 12-month forward PE of 19.3x on FY25E EPS, which represents 0.5SD below the last 10- year mean."

12 Jul 2023, 07:44:52 AM IST

TCS Q1 Results Live: IT major to announce interim dividend

The Board of Directors of Tata Consultancy Services (TCS) will also consider the declaration of an interim dividend to the equity shareholders in its meeting today along with the financial results.

The interim dividend, if declared, shall be paid to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, July 20, 2023, which is the Record Date fixed for the purpose, TCS had said in a regulatory filing earlier.

Most likely TCS' shares will trade ex-dividend on July 20 as well, the same as the record date due to the 'T+1' settlement type.

12 Jul 2023, 07:23:48 AM IST

TCS Q1 Results Live: Revenue may rise marginally, Net profit likely to fall 4.6% QoQ: Motilal Oswal

TCS is likely to post a marginal revenue growth of 0.7% QoQ at 59,600 crore in Q1FY24, while its net profit is expected to decline 4.6% sequentially to 10,900 crore, says brokerage firm Motilal Oswal Financial Services.

Expect muted revenue growth on account of project cancellations and delays. Discretionary spends continue to remain under pressure. EBIT margin is expected to decline 140 bps, on account of wage hikes and weak revenue growth. The deal pipeline should remain resilient.  Outlook on near-term demand environment, BFSI, and deal wins are the key monitorables, it said.

12 Jul 2023, 07:09:54 AM IST

IT sector Q4 results review: Mixed numbers, cautious outlook; what's the road ahead?

On expected lines, the January-March quarter (Q4FY23) numbers of Indian IT companies came on the softer side with signs of stress due to the economic slowdown in the key markets including the US and Europe. Their numbers were mixed but the management commentary hinted that the road ahead was challenging. Read full report here

12 Jul 2023, 06:48:50 AM IST

TCS Q1 Results Live: Key things to watch out for

As TCS announces its Q1FY24 earnings, key things to watch out for include CY23 IT budget and the possibility of an uptick in H2 as H1 played out in a muted manner; Demand trends in key verticals like BFSI, Retail, Manufacturing and Communications; Deal intake in Q1 and deal pipeline and pricing environment considering macro uncertainties and deal mix shift towards cost takeouts.

Additionally, margin outlook, management commentary on the demand environment across geographies and update on delay or cancellation of projects due to macro uncertainties and hiring plan amid slowing growth and macro uncertainties, will also be under radar.

12 Jul 2023, 06:36:29 AM IST

TCS Q1 Results Live: Net profit may fall 2%, QoQ; EBIT margin likely to decline by 100 bps QoQ: Emkay

TCS’s Q1FY24 net profit may fall 2% sequentially to 11,167.7 crore, while net sales may grow by 1.3% to 59,911.8 crore, according to Emkay Global Financial Services. It builds in 1.3% QoQ USD revenue growth factoring 30 bps cross-currency tailwinds for TCS. 

EBIT margin is likely to decline by 100 bps QoQ due to wage hike, partly negated by operating efficiencies, employee pyramid rationalization, and cross-currency tailwinds, it said.

12 Jul 2023, 06:13:56 AM IST

TCS may see muted revenue growth on project delays; EBIT margin may contract

TCS Q1FY24 revenue may rise 0.7% QoQ to $7,246 million. In rupee terms, its revenue is expected to grow to 59,600 crore. The company is expected to post net profit of around 10,900 crore, registering a sequential decline of 4.6%. EBIT is expected to fall to 13,800 crore, while EBIT margin is likely to contract to 23.1% from 24.5%, QoQ. Read here

12 Jul 2023, 06:00:22 AM IST

TCS Q1 results: IT sector Q1 revenue growth to remain muted; margin to remain under pressure

The deteriorating global macros and wage hikes are likely to impact earnings of Indian IT services companies. Overall, the weakness in demand is likely to have continued in Q1FY24 with a significant hit on discretionary spends. Analysts expect revenue growth of Tier-I companies to be in the range of -2.5% to +0.9% QoQ CC. Revenue of Tier-II players are expected to fall within a wider range of -1.2% to +3.3% QoQ in CC terms.

12 Jul 2023, 06:00:22 AM IST

TCS Q1 results: Company to kickstart Q1FY24 earnings season

Tata Consultancy Services (TCS) is set to kickstart the corporate earnings season today. Along with TCS, HCL Technologies will also announce its June quarter results today

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