Result Expectation of Top IT Companies TCS, HCL Technologies and Infosys

Q1 Results expectations IT sector

Corporate Action
by Nikita Bhoota Last Updated: 2022-08-08T18:41:17+05:30

The top 3 Indian IT companies — TCS, Infosys, and HCL Technologies — are anticipated to post a healthy set of numbers in the first quarter of FY22 earnings. Analysts believe that Nifty IT companies will continue reporting strong momentum with quicker hiring, faster revenue/earnings growth, and higher cash flow conversion.

Tata Consultancy Services (TCS):
TCS is set to announce the April-June quarter earnings of the current fiscal today i.e. 08, July 2021. The street experts expect constant currency growth of 3 percent sequentially, and 30bps of cross-currency tailwinds. In spite of the FY22 wage increments being rolled out from April 2021, EBIT margin decline is expected to be limited to 110bps, due to slight INR depreciation and growth leverage. The major things to watch out for are large deal TCV, outlook on client spending trends and pricing trends, and levers to defend or improve margins in the backdrop of certain supply-side concerns. 

Actual Result:
TCS reported 18.5% growth in total sales revenues for the Jun-21 quarter on consolidated basis at Rs45,411cr.

TCS Financial highlights

Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 45,411 ₹ 38,322 18.50% ₹ 43,705 3.90%
Operating Profit (Rs cr) ₹ 11,588 ₹ 9,048 28.07% ₹ 11,734 -1.24%
Net Profit (Rs cr) ₹ 9,008 ₹ 7,008 28.54% ₹ 9,246 -2.57%

Source: IIFL

Infosys will announce its first-quarter earnings of the current fiscal next week on July 14. Analysts expect strong revenue growth on the ramp of large deals and higher billing days. Analysts community expect Infosys to raise its current revenue growth guidance only after 2QFY22. 

Also Read: Infosys AGM 2021

HCL Technologies (HCL Tech): 
Analysts expect HCL Tech to quantify its double-digit revenue growth outlook. The street experts see weak sequential revenue growth. Investors are likely to focus on the outlook on CY21 client spending/IT budget trends, update on revenue and margin outlook for FY22, and measures to defend/protect margins in the backdrop of supply-side pressures. Analysts anticipate ramp-ups on deals won in 4QFY21 in 2Q/3QFY22 and better clarity on guidance.

Check: 5 Large Cap Stocks to BUY

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

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