TCS is set to release its Q2 FY25 results today, October 10, 2024, with earnings expected to show low single-digit growth. In the previous quarter, TCS reported a 9% increase in net profit, reaching ₹12,040 crore, while revenue grew by 5% to ₹62,613 crore. Analysts have mixed forecasts for this quarter, with Kotak Institutional Equities projecting a 30 basis points quarter-on-quarter increase in EBIT margin, while HSBC anticipates a 1.5% quarter-on-quarter revenue growth in constant currency terms. Nuvama has a slightly lower forecast, estimating a 1.3% revenue growth in constant currency [668f84b3].
The financial performance may receive a boost from a significant deal with BSNL valued at ₹15,000 crore, which could positively impact TCS's financials [668f84b3]. However, the market sentiment is also influenced by the recent passing of Ratan Tata on October 9, 2024, which has cast a shadow over TCS's press conference and may affect investor sentiment [668f84b3].
In the broader context, investors in the IT sector are closely monitoring the Q2 results of major companies including TCS, Infosys, Wipro, TechM, and HCL Tech. The BSE IT index has rallied 16% year-to-date, reflecting positive investor sentiment. Analysts have varying predictions for the Q2 results, with Arihant Capital favoring TCS among tier I players, while Kotak forecasts a decline in EBIT margin for most companies due to a slowdown in growth rates and rising costs. HCL has also deferred wage revisions for junior levels by a quarter, adding to the uncertainty in the sector [b78962b7].
Cipla Ltd. reported strong Q2 FY24 earnings, driven by robust performance in the U.S. and South Africa, with revenues exceeding expectations. Bayer CropScience and Tilaknagar Industries also reported significant profit increases, highlighting a positive trend in the pharmaceutical and beverage sectors [f30d5476][6f6c73d1][8df1b65a].
In the travel sector, Yatra Online and Cleartrip have seen increased bookings, particularly for religious destinations, as the government plans to develop these areas into world-class tourist spots. This has positively impacted shares of tourism-related companies, including SpiceJet and ITC [61581838][166d9f83].