Though Tata Consultancy Services (TCS) shares closed 0.67% lower on Thursday at Rs 2,788 on BSE, the scrip is expected to open higher on Friday as the Q3 results beat street expectations with a net profit of Rs 6,531 crore, 1.1% higher than the street expectations. The scrip opened on Thursday at Rs 2,807 before hitting a high of Rs 2,820 and plunging to a low of Rs 2,782, against the previous session's closing of Rs 2,807. On NSE, the shares closed at Rs 2,792.50, 0.50% lower against the Wednesday's closing of Rs 2,806.60.
TCS, just as other IT majors, declared the third quarter results on Thursday evening. The company announced a net profit of Rs 6,531 crore in the Q3 of 2018 fiscal. In its Q3 2018 preview, HDFC Securities said, "Within tier-1 IT, TCS is expected to lead operational performance while Infosys and HCL Technologies are expected to lag."
The Brokerage further said, "IT sector (coverage universe) is expected to be impacted by 3Q seasonality and yet post mild revenue acceleration. Revenue growth is expected at 1.2% QoQ and 9.1% YoY. Tier-1 IT is expected to post revenue growth of 1.2% QoQ (as compared to 0.3% in 3QFY16-17 each). Tier-2 IT is expected to grow at 1.8% QoQ and 11.2% YoY for the quarter."
In the financial year 2017, TCS posted a net profit of Rs 23,653 crore against an approximate profit of Rs 22,883 crore and nearly Rs 19,257 crore in fiscal 2016 and 2015, respectively.
TCS's revenue is estimated to be Rs 31,072 crore and EBIT (earnings before interest and tax) margin expected to be flat sequentially at 25.1%. APAT estimated to be Rs 6,563 crore, 1.6/-3.7% QoQ/YoY.