TCS share price trades in the red ahead of Q4 earnings

TCS share price trades in the red ahead of Q4 earnings

Tata Consultancy Services (TCS) share price was down over a percent in the morning session on April 12th in line with the market fall.

During the day the IT services major is expecting to report robust and best earnings growth among peers in the quarter ended March 2021. While driven by a cross-currency tailwind, recovery in demand. A ramp-up of large deals, and strong demand in cloud adoption, brokerages said.

Moreover, Tata Consultancy Services (TCS) share price gathers 11 percent during the January-March quarter and spiked 74 percent in the full year FY21. Against 6.6 percent and 102 percent gains registered by the Nifty IT index during the periods. The country’s second-largest listed company by market capitalization is likely to report.

On the other side, more than 4 percent growth in constant currency revenue and 5 percent growth in dollar terms in Q4FY21 compared to Q3FY21. Migration to could, recovery in demand, and cross-currency benefits are expected to positively impact Q4FY21 revenues, said ICICI Direct.

According to the brokerage, TCS is expected to register 4.2 percent QoQ growth in constant currency led by anticipated improvement. In demand from BFSI, healthcare, and retail, acceleration in digital technologies, and ramp-up of deals. An additional, cross-currency tailwind would lead to revenue growth of 5.0 percent QoQ in dollar terms. In rupee terms, revenue is expected to increase 3.9 percent QoQ (lower than dollar growth due to rupee appreciation), said the brokerage.

Prabhudas Lillader also expects robust growth of 4.3 percent in constant currency. Given the strong ramp-up of large deals signed robust demand in cloud adoption. And strong tailwinds of large transformational digital deals. The stock was trading at Rs. 3,276.40, down Rs. 45.80, or 1.38 percent. While it has touched an intraday high of 3.343.90 and an intraday low of Rs. 3,273.65.

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