TCS, Infosys Q4 results next week: Here’s what brokerages say we can expect
Investors should zero in on the commentary on the outlook on attrition and deal environment, analysts argue.
- Apr 8, 2022,
- Updated Apr 8, 2022 1:45 PM IST
The fourth-quarter result season is set to kick off with earnings of IT majors Tata Consultancy Services (TCS) and Infosys next week. Overall, revenue growth is expected to remain strong for information technology (IT) companies driven by accelerated adoption of digital technologies and migration to cloud-based solutions in the aftermath of this covid-19 pandemic.
HDFC Securities believe that Tier-1 IT companies including TCS, Infosys, Wipro, HCL Technologies and Tech Mahindra together may report 20.40 per cent and 10.1 per cent year-on-year growth in net sales and net profit in Q1.
TCS, which is slated to report its Q4 earnings on Monday, may post over 15 per cent year-on-year (YoY) and 3 per cent quarter-on-quarter (QoQ) growth in topline figures. On the other hand, analysts believe that profit may rise in single-digit.
While commenting on TCS, YES Securities said, “We expect broadly stable margin with attrition almost peaking out. Management commentary on outlook on growth environment would be the key thing to watch out for.” It projected a 15.7 per cent YoY and 3.4 per cent QoQ rise in revenue for the quarter ended March 31. The brokerage also forecasted a 9.1 per cent YoY and 3.3 per cent QoQ rise in net profit.
According to a report by HDFC Securities, TCS may post 15.10 per cent and 8.5 per cent YoY growth in net sales and net profit, respectively, in Q4. On the other hand, the top line and bottom line may increase by 2.9 per cent and 2.7 per cent on QoQ basis.
On the other hand, Infosys, which will announce its Q4 results on April 13, may report over a 15 per cent YoY rise in revenue and profit after tax in Q4FY21, while the top line and bottom line may witness single-digit growth on a QoQ basis.
According to YES Securities, Infosys may report a 26.30 per cent YoY and 4.2 per cent QoQ rise in revenue in the March quarter. Net profit may increase by 20.30 per cent YoY and 5.1 per cent QoQ.
Investors should zero in on the commentary on the outlook on attrition, deal environment and FY23 revenue and margin guidance of Infosys.
HDFC Securities showed that Infosys may post 24.80 per cent YoY growth in net sales and a 15.40 per cent YoY rise in adjusted profit after tax in Q4. It further highlighted that net sales and PAT may grow by 3 per cent and 0.8 per cent, respectively, on a QoQ basis.
The fourth-quarter result season is set to kick off with earnings of IT majors Tata Consultancy Services (TCS) and Infosys next week. Overall, revenue growth is expected to remain strong for information technology (IT) companies driven by accelerated adoption of digital technologies and migration to cloud-based solutions in the aftermath of this covid-19 pandemic.
HDFC Securities believe that Tier-1 IT companies including TCS, Infosys, Wipro, HCL Technologies and Tech Mahindra together may report 20.40 per cent and 10.1 per cent year-on-year growth in net sales and net profit in Q1.
TCS, which is slated to report its Q4 earnings on Monday, may post over 15 per cent year-on-year (YoY) and 3 per cent quarter-on-quarter (QoQ) growth in topline figures. On the other hand, analysts believe that profit may rise in single-digit.
While commenting on TCS, YES Securities said, “We expect broadly stable margin with attrition almost peaking out. Management commentary on outlook on growth environment would be the key thing to watch out for.” It projected a 15.7 per cent YoY and 3.4 per cent QoQ rise in revenue for the quarter ended March 31. The brokerage also forecasted a 9.1 per cent YoY and 3.3 per cent QoQ rise in net profit.
According to a report by HDFC Securities, TCS may post 15.10 per cent and 8.5 per cent YoY growth in net sales and net profit, respectively, in Q4. On the other hand, the top line and bottom line may increase by 2.9 per cent and 2.7 per cent on QoQ basis.
On the other hand, Infosys, which will announce its Q4 results on April 13, may report over a 15 per cent YoY rise in revenue and profit after tax in Q4FY21, while the top line and bottom line may witness single-digit growth on a QoQ basis.
According to YES Securities, Infosys may report a 26.30 per cent YoY and 4.2 per cent QoQ rise in revenue in the March quarter. Net profit may increase by 20.30 per cent YoY and 5.1 per cent QoQ.
Investors should zero in on the commentary on the outlook on attrition, deal environment and FY23 revenue and margin guidance of Infosys.
HDFC Securities showed that Infosys may post 24.80 per cent YoY growth in net sales and a 15.40 per cent YoY rise in adjusted profit after tax in Q4. It further highlighted that net sales and PAT may grow by 3 per cent and 0.8 per cent, respectively, on a QoQ basis.