By Tata Consultancy Services is set to announce its third-quarter results on Thursday. Here are the key details:
Net Profit Forecast
Tata Consultancy Services is expected to see a 6.6% increase in net profit, reaching 115.61 billion Indian rupees ($1.39 billion) for the quarter ending in December. This is based on a poll of analysts conducted by FactSet. In the same period last year, the company reported a net profit of INR108.46 billion.
Revenue Forecast
The company’s third-quarter revenue is estimated to have grown by 4.1% to INR602.21 billion compared to the previous year, according to the FactSet poll.
What to Watch For
Banking Industry
Tata Consultancy Services has a strong presence in the banking, financial services, and insurance sector, which is its largest client segment. The company recorded a 7.4% increase in second-quarter profit from this sector compared to the previous year. Investors will be eager to see the profit growth in this segment, especially considering the possibility of higher-than-usual furloughs that may impact revenue.
Buyback
In November, Tata Consultancy Services launched one of the largest buybacks in history. Investors will be keeping an eye out for any further updates on how the company plans to reward its shareholders.
Workforce
Given the recent domestic economic upturn, with GDP growth reaching 7.6% year-on-year for the three months ending in September, investors will be interested in hearing about Tata Consultancy Services’ hiring plans.
Comments