TCS Q3 results preview: What to expect? Top 5 things to track

TCS, India's largest information technology (IT) company is set to release its third quarter results for the financial year 2024-25 on Thursday, January 9, 2025

Published on: Jan 9, 2025, 13:09:13 IST

By HT News Desk

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Tata Consultancy Services Ltd (TCS), India's largest information technology (IT) company, is set to release its third quarter results for the financial year 2024-25 on Thursday, January 9.

TCS' ₹15000-crore 4G deal with BSNL involves the setting up large data centres. (Bloomberg)

The following are the expected results for the IT giant, according to an Economic Times report which cited estimates by multiple top brokerages.

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1) TCS Q3 revenue

TCS may see an uptick between 5.2% and 6.4% in its revenue, ET reported, citing the estimates of Nomura, Motilal Oswal Financial Services, JM Financial, and Elara Capital.

The company's revenue, especially from banking, financial services, and insurance (BFSI) and consumer businesses, will provide insight into the revival of IT demand in developed markets.

2) TCS Q3 profitability

Nomura expects profitability, measured using the earnings before interest and taxes (EBIT) margin, to increase by 110 bps, while HDFC Securities and Motilal Oswal predict a 50-80 basis point decline.

HDFC Securities expects the company's adjusted profit after tax (PAT) growth to be 2% YoY, while others like Motilal Oswal Financial Services and Elara estimate an 8-10% YoY growth.

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3) Deals

According to BNP Paribas, TCS showed a slowdown in winning deals during the third quarter, likely due to the holiday season.

However, according to the report, the company still led the large-cap pack in this regard, with five deals from Bank of Bhutan, Telenor Denmark, Landis+Gyr, Bank of Baroda, and Chorley Building Society.

4) Q3 Furlough and BSNL deal

A furlough is a temporary and unpaid leave from work caused due to no work being available, though the status of employment still continues.

The furloughs seen in Q3, along with GCC dynamics in deals and the declining revenue from the BSNL deal may lead to a 0.8% decline in revenue compared to the previous quarter, according to Elara securities.

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5) AI

The company's progress on GenAI is also an important factor which has to be monitored.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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