Infosys, TCS and HDFC Bank shares in focus ahead of Q4 results this week. Here are analyst previews

Tata Consultancy Services (TCS), Infosys and HDFC Bank are three Nifty constituents, which will report their quarter results in coming days. TCS will kick off the earnings season on Wednesday (April 12) while Infosys will release its quarterly numbers on Thursday (April 13). HDFC Bank will declare its earnings on Saturday (April 15). This is what analysts are expecting from the three large cap companies this results season:  

TCS Q4 results preview | Results date April 12

TCS is set to announce its March quarter results on Wednesday. Analysts largely expect the Tata group firm, whose CEO Rajesh Gopinathan resigned in March, to log $8.5-10 billion in deal wins. They estimate profit growth for the IT major in double digits, which would be the highest in the tier I space. TCS’ revenue growth in constant currency (CC) is also likely to be the highest among peers on a sequential basis, so would be its Ebit margins, pegged at 25 per cent, as per analysts. Motilal Oswal Securities sees revenue for TCS rising 7.6 per cent YoY (1.8 per cent QoQ) to $7,202 million in dollar terms. In CC terms, revenue growth is likely to be at 0.9 per cent QoQ, implying 90 bps currency tailwind, the brokerage said. In rupee terms, revenue is seen jumping 17 per cent YoY (1.7 per cent QoQ) to Rs 59,200 crore. Net profit is seen climbing 17 per cent YoY to Rs 11,640 crore.

Infosys Q4 results preview | Results date April 13

Infosys would announce its quarterly results on Thursday. ICICI Securities expects revenue growth for Infosys to be soft at 0.1 per cent QoQ in constant currency terms, as March is a seasonally weak quarter for Infosys. This, it said, would translate to 16.4 per cent YoY CC growth in FY23E within the company’s guided range of 16-16.5 per cent. "We estimate 110 bps cross-currency tailwinds in Q4FY23. We model 21.5 per cent EBIT margin, flat QoQ in Q4FY23 and 21.2 per cent in FY23, in line with management commentary of achieving margins near the lower end of guidance of 21-22 per cent. Large deal wins were strong in Q3FY23 at $3.3 billion (20 per cent QoQ), 31 per cent YoY), partly aided by the closure of a bunch of license deals," it said.

ICICI Securities said the pipeline is replenished, but we expect deal TCV in the range of $2.5-3 billion, a decline on QoQ basis. It expects Infosys to start the year with conservative guidance of 6-8 per cent.

HDFC Bank Q4 results preview | Results date: April 15

Analysts see HDFC Bank to report 19-25 per cent YoY rise in March quarter profits. Elara Securities expects HDFC Bank to report 24.4 per cent YoY rise in profit at Rs 12,507 crore for the March quarter compared with Rs 10,055 crore in the same quarter last year. Net interest income is seen rising 28.2 per cent to Rs 24,204 crore from Rs 18,872 crore YoY.

"As reported in provisional updates, business momentum has turned out strong with loan growth of 16.9 per cent YoY and 6.2 per cent QoQ. Deposit growth of 20.8 per cent YoY and 8.7 per cent QoQ. was higher than our estimates. We are yet to align reported numbers to show outperformance," Elara Securities said.

Emkay Global expects NIM for the quarter to come in at 4.3 per cent, up 5 basis points QoQ. It expects HDFC Bank to report healthy profitability, led by healthy NII growth/contained provisions. Slippages are expected to come off on a QoQ basis due to lower stress from the agri portfolio," it said while expecting profit for the quarter to come in at Rs 12,037 crore, up 19.7 per cent YoY.

 

 

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