TCS, Infosys, IT cos Q4 results preview: Strong revenue growth, hiring pick-up, lower margins
India’s largest IT company Tata Consultancy Services (TCS) will kick-off earnings season next week with its fourth-quarter FY21
India’s largest IT company Tata Consultancy Services (TCS) will kick-off earnings season next week with its fourth-quarter FY21 results scheduled on Monday, April 12, 2021. TCS share price surged 11 per cent in Jan-Mar 2021, and 16 per cent so far this year (YTD). During the quarter ended March 31, 2021, the Nifty IT index jumped 6.61 per cent, as against a rise of 5 per cent in the Nifty 50 index. Analysts believe that growth in the fourth quarter of the last fiscal has continued to be driven by a supportive demand environment and large deal wins.
IT companies have been reporting better than expected corporate earnings for the past two quarters. Analysts expect companies to report strong corporate earnings yet again this quarter backed by large deal ramp-ups and continued spend on digital programs.
Revenue growth: “Barring Wipro and Mindtree, most companies are expected to end FY21 with flattish-to-low single-digit full-year growth despite a sharp decline in Q1FY21,” said Ruchi Burde and Seema Nayak, analysts at BOB Capital Markets. IT companies adopted a strong cash flow management during the onset of the COVID-19 pandemic given uncertainty about the demand environment and low visibility in revenue growth in the initial months of the pandemic.