IT giant TCS reports better than expected revenue and margin for the first quarter of the current financial year, leading to a 3% increase in share price. Despite a 3.2% decline in net profit, TCS saw sequential growth in all major markets and a seven-quarter high in hiring. Global brokerage Jefferies upgrades the stock and sees further potential gains of 18%. Stay updated on TCS and other business news, stock market updates, and personal finance coverage with Zee Business.
TCS has seen a positive start in the stock market as it gained over 1.5% following its Q4 results showing a 100 basis-point rise in operating margin and record deal wins. However, major foreign brokerages have contrasting views on the IT giant. TCS's CEO and MD, K Krithivasan, expressed satisfaction with the performance, citing a strong order book and execution excellence, while analysts from Mehta Equities noted a slight underperformance in revenue growth but praises for surpassing EBIT forecasts. All eyes are now on Infosys' upcoming results to assess the overall recovery in the IT sector.
Shares of IT giants Infosys and Wipro experienced declines on Wall Street influenced by Accenture's revised revenue projection for 2024, reflecting the cautious economic outlook. The consulting firm's share price tumbled over 9% following its updated forecast, anticipating subdued demand for its services due to economic headwinds. This development highlights the broader challenges faced by the IT and consulting sector, with businesses tightening budgets and limiting spending on additional services. Indian IT majors such as TCS and Infosys have previously reported subdued results, in line with this trend of reduced industry spending. Accenture's third-quarter revenue forecast fell below market estimates and new bookings experienced a decline, contributing to the negative sentiment.
HCL Technologies and Wipro reported strong quarterly results for the October-December period, following in the footsteps of TCS and Infosys. HCL Tech's revenue grew 5.9% sequentially and the company crossed a milestone of $12 billion in services revenue. The IT giant's CEO is confident in their continued growth momentum and is excited about their progress in hyper-automation and delivering innovation to clients. HCL Tech also announced 18 large deals and its 84th consecutive quarter of dividend payouts.