India in terms of market capitalization has outperformed rivals Infosys & Wipro so far in 2023. On Wednesday, TCS will present its third quarter financial results.
For the quarter that concluded in March 2023, domestic brokerage and research firm Axis Securities anticipates TCS to report revenue growth of 2.5% quarter over quarter (QoQ).
TCS is predicted by brokerage Nuvama to post sequential sales growth of 1.4% in constant currency terms, the highest among its competitors.
"TCS is likely to be the fastest-growing Tier 1 IT company in Q4FY23. Gains in wallet share & vendor consolidation will probably be followed by growth-boosting investments in digital.
In our opinion, exposure to affected banking clients won't have a significant effect on the quarter's revenue growth, according to domestic brokerage Kotak Institutional Equities.
Analysts predict TCS may fall short of its EBIT margin goal. Brokers anticipate that TCS will announce a 25% Ebit margin, up 50 basis points sequentially.
According to ICICI Direct, TCS will fall short of the desired exit EBIT margin range of 25% since slower growth would be an additional challenge.
As a result, the firm has only added 20 bps to its QoQ margin expansion (versus 50 bps implied margin expansion for target exit).