TCS, HCL Technologies, Anand Rathi, 5Paisa Capital To Announce Q1 Results Today - Earnings Preview

Major IT firms, Tata Consultancy Services Ltd and HCL Technologies Ltd are set to announce their first quarter results for fiscal 2024 on Wednesday. Among non-IT firms Anand Rathi Wealth Ltd, Steel Strips Wheels Ltd, 5Paisa Capital Ltd, Hathway Bhawani Cabletel & Datacom Ltd, and National Standard (India) Ltd will also declare their quarterly results.

TCS is likely to report a net profit of Rs 10,971 crore alongside a revenue of Rs 59,615.4 crore for the April-June quarter FY24, according to Bloomberg data.

HCL Technologies is expected to report a net profit of Rs 3,831 crore for the first quarter, with revenue of around Rs 26,883 crore, according to Bloomberg.

The results of Indian IT services companies are likely to be impacted by weakening global economies and wage hikes. Overall, the first quarter of financial year 2023-23 is expected to have witnessed a sharp decline in discretionary spending due to the sustained weakening in demand. 

According to analysts, Tier-1 companies’ revenue growth would range from -2.5 per cent to 0.9 per cent QoQ in constant currency (CC). For Tier-2 companies’ revenue, a wider range of -1.2 per cent to +3.3 per cent QoQ in CC terms is expected.

According to Bloomberg data, Anand Rathi is estimated to report Q1FY24 revenue of Rs 145.8 crore and a net profit of Rs 46.5 crore. Steel Strips is also expected to announce first-quarter revenue of Rs 1,040.5 crore and a net profit of Rs 54.8 crore.

Along with quarterly results, the TCS board may also consider an interim dividend. HDFC Institutional Equities sees TCS stock at Rs 3,750. The stock has delivered higher returns this year compared to Nifty IT’s 7 per cent surge during the same period.

The board of HCL Tech is likely to consider the payment of a second interim dividend for the financial year 2023–24.