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TCS, Infosys trade flat ahead of Q4 results announcement

It is for the first time that the two IT giants will announce their quarterly results on the same day.

SI Reporter  |  New Delhi 

The firm’s employees in the age group of 18-25 came down to 28.16 per cent from 31.19 per cent in the previous financial year
Brokerage firm Prabhudas Lilladher expects revenue of TCS and Infosys to grow 2.3 per cent in constant currency terms in Q4.

Shares of IT giants (TCS) and were trading flat on the in the early hours, with their January-March quarter (Q4FY19) results set to be announced later in the day.

At 9:40 AM, was up 0.82 per cent at Rs 749.25 while had gained 0.69 per cent to trade at Rs 2,033. In comparison, the S&P had risen 0.23 per cent, or 87 points, to 38,694.

It is for the first time that the two IT giants will announce their quarterly results on the same day. Read here on what to expect from their results

At the bourses, and have outperformed the benchmark S&P in the last year as they have gained over 39 per cent and 35 per cent, respectively. The S&P BSE Sensex, on the other hand, has risen nearly 14 per cent during the period while the S&P BSE IT index has surged over 28 per cent, ACE Equity data show.

Some experts believe that with the heavyweights deciding to announce the results on the same day, the overall sector will put up a good show for the quarter. “We expect a steady quarter, with strong growth from TCS, Infosys and HCL Technologies in the tier-1 IT services pack," wrote Aniket Pande and Rajat Gandhi of brokerage Prabhudas Lilladher. "Despite seasonality, we expect strong deal closures in line with the previous quarter but anticipate some pressure on Ebit (earnings before interest and taxes) margins due to rupee appreciation, project ramp-ups, and continued supply-side constraints.”

Brokerage firm Prabhudas Lilladher expects revenue of and Infosys to grow 2.3 per cent in constant currency terms in Q4. It also sees the former's operating margin remaining stable and that of Infosys facing some headwinds.

Edelweiss Research has said accelerating digital growth, an improving deal pipeline and revival in the BFSI (banking, financial services and insurance) and retail verticals would accelerate Infosys’ revenue growth in the next financial year. “We estimate 8 per cent growth in dollar revenues in FY19, which will rise to 10 per cent in FY20,” analysts at the brokerage wrote in an earnings preview note.

First Published: Fri, April 12 2019. 09:59 IST
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