TCS trades flat ahead of March 2024 quarter results today

Shares of Tata Consultancy Services (TCS) were trading flat ahead of the March 2024 quarter results (Q4-FY24) scheduled to be announced later in the day today. 

At 13:25 pm on Friday, the stock was trading marginally lower at Rs 3,982.15 per share. In comparison, the S&P BSE Sensex was trading nearly 700 points lower at 74,300 levels. The BSE IT index, on the other hand, soared 0.15 per cent to hit an intraday high of 36,140.90.

However, earlier in the day, the stock soared as much as 0.77 per cent to hit an intraday high of Rs 4,013.25.

Analysts anticipate TCS to report single-digit growth in both revenue and profit for Q4FY24 compared to the same period last year. This is attributed to the scaling up of major deals and operational efficiencies. 

Factors such as the reversal of furloughs and contributions from deals like the one with BSNL are expected to drive revenue growth.

Market expectations for TCS's net profit in Q4FY24 range between Rs 11,452 crore and Rs 12,283 crore, marking a year-on-year increase of 7-8 per cent compared to Q4FY23. Sequentially, this could represent a growth of 3-7 per cent. 

Revenue is anticipated to grow annually by 3-4 per cent, ranging from Rs 61,077 crore to Rs 61,662 crore.

Past performance

In the December 2023 quarter (Q3-FY24), TCS reported a consolidated net profit of Rs 10,846 crore, representing a 3.98 per cent increase, with net sales rising 5.28 per cent to Rs 58,229 crore compared to Q2FY23. 

On a year-on-year basis, net profit and net sales increased by 11.02 per cent and 19.11 per cent, respectively. 

Constant currency revenue witnessed a 13.5 per cent year-on-year growth. However, operating margin decreased by 0.5 per cent to 24.5 per cent in Q3 FY23. The company's order book stood at $7.8 billion.

Furthermore, profit before tax rose by 3.89 per cent to Rs 14,644 crore in Q3 FY23, compared to Rs 14,096 crore in Q2 FY23. 

TCS also generated net cash from operations amounting to Rs 11,154 crore, equivalent to 102.8 per cent of net income.

The board declared a third interim dividend of Rs 8 and a special dividend of Rs 67 per share of Re 1 each of the company, with the record date set for Tuesday, January 17, 2023.