Q3 results live updates: TCS Profit up 2%, Infosys down 1.7% QoQ

TCS incurred a one-time charge of Rs 958 crore in the quarter gone by towards the settlement of a legal claim.

K Krithivasan, Chief Executive Officer and Managing Director, said: “Our strong performance in a seasonally weak quarter buffeted by macro-economic headwinds, demonstrates the strength of our business model." 

EBIT margin up to 25 percent, a jump from 24.3 percent in the previous quarter

The firm has declared a third interim dividend of Rs 9 and a special dividend of Rs 18 per Equity Share of Rs 1 each of the Company.

Overall deal pipeline and signing; any margin pressure due to large efficiency deals; outlook on margins

-- -1% QoQ c/c revenue growth with ~15 bps cross currency headwinds translating into a -1.1% QoQ USD revenue growth. -- EBIT margins to decline by 30 bps QoQ negatively impacted by wage increment in Nov. -- Lower sub-con expenses seen. INR depreciation to help offset part of the headwind

For TCS, YES Securities sees profit rising 7.1 per cent YoY to Rs 11,620 crore on 3.1 per cent YoY rise in sales at Rs 60,323 crore. PhillipCapital sees Infosys profit falling 5.3 per cent to Rs 6,239 crore

Nomura India expects revenue for TCS to decline 0.4 per cent sequentially in constant currency terms. It expects a 0.7 per cent positive revenue contribution from BSNL project and negative impact from furloughs and weak discretionary demand

-- Results expected around 3:45 p.m. -- This will be followed by a presser 4:30 p.m. by leadership team -- 60-minute conference call at 6:30 p.m on firm's performance

-- PAT at Rs 6,435 crore, down 2.3% YoY -- Revenue at Rs 39,670.1 crore, up 3.5% YoY -- Growth to be muted in quarter led by weak demand environment

Revenue growth is expected to be weak at -1.7% QoQ CC, on account of continued macro challenges and additional 3Q seasonality.

Kotak Institutional Equities sees the IT stack reporting a YoY and QoQ decline in revenues. Growth for TCS and HCLT will likely stand at 0.5% and 4.3% on qoq and 1% and 2.2% on yoy comparison

December is a seasonally weak quarter for IT firms on account of high furloughs and Infosys' Ebit margin seen taking a hit sequentially and on yearly basis due to the impact of two months of wage hikes, analysts said.

For Infosys shares, more than the quarterly numbers, eyes would be on whether the IT major narrows its FY24 revenue guidance further and what is its management's take on the recent $1.5 billion AI deal termination  

Nirmal Bang is expecting profit for TCS to rise 7.8 per cent YoY to Rs 11,691.70 crore on 2.4 per cent YoY rise in sales at Rs 59,608 crore.

After three successive quarters of $10 billion or above TCV, we believe Q3FY24 TCV will cool off to a possible sub-$10 billion number.