Revenue in rupee terms is likely to have grown 2.62 per cent to Rs 16,491 crore from Rs 16,069.8 crore in previous quarter. Revenues in dollar terms are expected to have increased to $3,036 million, up 2.98 per cent, against $2,948 million in previous quarter.
EBIT in rupee terms is likely to be Rs 4363 crore, down 0.41 per cent, from Rs 4,380.9 crore a quarter ago. EBIT margin is seen at 26.45 per cent vs 27.26 per cent.
Factors to watch:
* Expect volume driven revenue growth
* Cross currency headwinds of 60-70 bps
* Margins to decline by 80 bps due $ 30 M settlement, currency hit
* Forex gain likely at Rs 75 cr vs loss of Rs 73.4 cr
* Expect commentary to suggest healthy demand environment
* Hiring guidance likely to be subdued
* Key focus: Deal momentum and commentary on discretionary spending will be the key
Following are brokerage expectations for TCS results:
TCS is likely to maintain its industry leading growth rate in this quarter as well, in our view. Infosys' guidance for FY14 could be an important take-away. We expect the guidance to be in the range of 10-12% growth and unlikely to be significant trigger for the company or the sector. Tech Mahindra performance is likely to be at the lower end of the peer range.
The brokerage remains Overweight on TCS, notwithstanding the premium valuations.