Tata Consultancy Services Expected to Post Rise in Second-Quarter Net Profit — Earnings Preview
By Kosaku Narioka
Tata Consultancy Services is scheduled to report second-quarter results on Wednesday. Here’s what you need to know:
NET PROFIT FORECAST: Tata Consultancy Services is expected to post an 8.8% increase in net profit to 113.50 billion Indian rupees ($1.36 billion) for the quarter ended Sept. 30, according to a poll of analysts by FactSet. That’s compared with INR104.31 billion net profit in the year earlier period.
REVENUE FORECAST: Second-quarter revenue is estimated to have risen 9.0% from a year earlier to INR602.75 billion, according to the FactSet poll.
WHAT TO WATCH:
–BANKING INDUSTRY: The banking, financial services and insurance industry is by far the biggest client segment for the company. First-quarter profit from the financial sector rose 5.6% from a year earlier. Investors are focusing on the pace of profit growth in the segment amid continuing uncertainty over the global economic outlook.
–DIVIDEND: The company’s board is scheduled to consider the potential distribution of interim dividend on Wednesday. In July, the company announced an interim dividend of INR9.00 a share. Investors are paying attention to the size of any dividend to be declared.
–WORKFORCE: Tata Consultancy Services added 523 workers on a net basis, bringing the total workforce to 615,318 employees as of the end of June. Investors are closely watching the pace of headcount growth.
Write to Kosaku Narioka at [email protected]
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