PL pegs net profit at Rs 12,310 crore while ICICI Securities's rupee revenue stands at Rs 62,491 crore.The company will be announcing its Q1 results on Thursday, July 11.Kotak estimates a 4.8% YoY jump in net sales of the company at Rs 62,229 crore while a 1.6% sequential growth.
The revenue growth would be driven by ramp-up of strong order signings in the earlier quarters.
PAT is expected to be to the tune of Rs 12,310 crore which will likely be a 10.7% jump over the corresponding quarter of the last financial year.
"Progress in large deal ramp ups and new logo additions to drive Q1 growth (1.4% QoQ CC).
The adjusted net profit is seen at Rs 11,731 crore, up 6% on a YoY basis and down 5.6% on a QoQ basis.
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Indian IT bellwether Tata Consultancy Services TCS ) is expected to report an 8% year-on-year jump in its net profit for the quarter ended June 30, 2024 at Rs 11,984 crore, according to average estimates of four brokerages. The revenue is expected to go up by 62,234 crore in the reported quarter which will be a growth of 4.8% over the corresponding quarter of the last financial year, the average estimates revealed.The gains will be driven by ramp-up of strong order signings in the earlier quarters along with traction in BFSI and retail segments.While Prabhudas Lilladher's (PL) estimates on profit after tax (PAT) is highest among the brokerages, ICICI Securities' revenue estimates of April-June quarter tops the chart. PL pegs net profit at Rs 12,310 crore while ICICI Securities's rupee revenue stands at Rs 62,491 crore.The company will be announcing its Q1 results on Thursday, July 11.Kotak estimates a 4.8% YoY jump in net sales of the company at Rs 62,229 crore while a 1.6% sequential growth. The revenue growth would be driven by ramp-up of strong order signings in the earlier quarters. The brokerage expects weak revenues in financial services and telecom. The adjusted profit after tax (PAT) is expected to go up by 8.7% on a YoY basis at Rs 12,043 crore while seeing a 3.4% decline on a quarter-on-quarter basis.Earnings, Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the reporting quarter stood at Rs 16,572 crore which is likely to go up by 10.5% on a YoY basis and 3.5% on a QoQ basis.Kotak forecasts 140 bps QoQ decline in EBIT margins due to wage revision and likely decline in utilisation rates while a 140 bps YoY increase in EBIT margins.Deal wins are estimated at $11-12 billion driven by a high rate of closures of cost take-out deals.Prabhudas sees a 4.6% YoY jump in net sales in Q1 at Rs 62,120 crore. On the QoQ basis, the revenue is expected to grow by 1.4%. PAT is expected to be to the tune of Rs 12,310 crore which will likely be a 10.7% jump over the corresponding quarter of the last financial year. Sequentially it will likely be down 1.5%.This brokerage estimates EBIT margin at 24.9% up 170 bps YoY while down by 110 bps on a QoQ basis.PL has an accumulate rating on the counter."Progress in large deal ramp ups and new logo additions to drive Q1 growth (1.4% QoQ CC). However, we expect a decline in margins by 110 bps sequentially due to compensation revision and visa costs, although the quantum of wage hike would be lower than that of last year," the PL note said.ICICI Sec sees rupee revenues at Rs 62,491 crore which will likely be a 5.2% YoY growth while a 2.1% QoQ growth. The adjusted net profit is seen at Rs 11,731 crore, up 6% on a YoY basis and down 5.6% on a QoQ basis."We build in 1.7% USD/1.8% CC QoQ revenue growth driven by traction in BFSI, retail (consumer business group)and hi-tech from the deals announced in Q1," ICICI Securities said in a note.The brokerage also expects EBIT margin to decline by 186 bps QoQ on higher employee costs – wage hike effective April 1, 2024 and double-digit hike for high performers.For TCS, management commentary on enterprise discretionary spending will be an important monitorable along with its take on fewer deal announcements in Q1FY25, campus hiring, large deals and turnaround in BFSI.Brokerage Antique Stock Broking has estimated TCS's net sales at Rs 62,094 crore for Q1FY2025 which will be 4.6% higher over Q1FY2024 and 1.4% up on a QoQ basis. As for the net profit for the reported quarter, TCS is expected to post Rs 11,853 crore, said Antique estimating 7% YoY growth and a 4.7% QoQ decline.Meanwhile, EBITDA is seen at Rs 16,352 crore, up 9% YoY and down 4.7 QoQ.Antique forecasts 1.5% revenue growth QoQ in constant currency with its USD revenue growth around 1.4% QoQ, with 10 bps headwind from cross currency. "We have built a similar contribution from BSNL as ramp-up may be slow because of the elections. Expects margin to decline by 170 bps to 24.3%, largely impacted by wage hike of 200 bps, partially offset by operational efficiency and lower sub-contracting cost," Antique said.
