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On Thursday, Tata Consultancy Services (TCS) will go up in the June quarter earnings season (Q1FY22), when it will post its quarterly numbers. India’s second-most valuable company, in terms of market capitalization, is expected to post a stellar show in the first quarter of the financial year 2021-22 (Q1FY22), with profit after tax (PAT) expected to rise between 30-36 per cent and revenue 19-20 per cent, on a yearly basis, analysts said, and expect a low base of last year, strong seasonality, digital traction and ramp-up of deals to drive TCS’ Q1 performance.
While the company’s margins are expected to take a hit, impacted by wage hikes, deal TCV is likely to be strong. Global brokerage Nomura expects TCS to reiterate higher than double-digit revenue growth in FY22 and to retain its aspiration to hit double-digit growth over the medium term.
“Outlook on the sustainability of double-digit revenues, trends in digital, margin outlook, talent management, offshoring trends, deal pipeline, and other long-term trends will be of investor interest,” said Devang Bhatt, analyst at ICICI Securities.
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