H N Menon
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TCS 2700 CALL IM IN AT 9.75

H N Menon at 10:33 AM - Jul 14, 2016 ( ) Views: 513









From: H N Menon at 10:42 AM - Jul 14, 2016( )

bght cash tcs intra 

100 at 2492

sl 2477

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H N Menon at 12:52 PM - Jul 14, 2016 ( )

Thanks Gurubhai

Hemant Parikh at 12:36 PM - Jul 14, 2016 ( )

TCS is all set to kick off earnings season on Thursday with many experts believing India's top software services firm will post stable numbers in the seasonally stronger June quarter while keeping an eye on concerns over Britain's exit from European Union. 
The IT major reported Rs 28,449 crore rupee revenue and $4,207 million dollar revenue in the March quarter.

Below are top five factors that investors will look out for in the TCS' first quarter (Q1) results:

Revenue growth and margins

June quarter is seasonally stronger for IT firms in terms of revenue growth but weak for margins due to wage revision and additional visa costs.
TCS is expected to report 3.1-3.5 per cent sequential revenue growth in constant currency terms, while margin may contract by 170 bps. Dollar revenue growth is likely to come in at 4.2 per cent QoQ.

Management commentary on Brexit holds key

The UK is the second biggest market for large domestic IT firms, with TCS accounting for the largest exposure of 26 per cent of its revenue from Europe. UK based BFSI companies need to be monitored carefully for any change in operating model (likely shift of work away from London). However, some believe Brexit event could, in fact, drive more business for IT firms.

"Amidst all the headwinds, Brexit event is likely to create additional IT spend driven by regulatory changes and change in existing IT systems to address the needs of the new political environment," said brokerage Prabhudas Liladhar.

Cross-currency fluctuations

Pound and euro have depreciated against dollar and this will adversely impact revenues in dollar terms. However, there will be no impact in constant currency revenues.

Though TCS' exposure to the UK is largest, brokerage Motilal Oswal doesn't see the company impacted the most thanks to the negating effect of yen's appreciation.

Key verticals

ICICI Securities said execution in digital revenues (up 14.8% QoQ in Q4FY16) and BFSI (up 3.2% QoQ in CC terms in a seasonally weak Q4FY16) would be closely watched.

"Commentary on Diligenta, Japan, Latin America and E&U will also be awaited as one or more of these segments have posed growth challenges in one or the other quarter for TCS in FY16," added the brokerage.

Management commentary

Edelweiss Securities believes while demand commentary will be robust, margin commentary will remain in the 26-28 per cent range due to lack of substantial margin levers. More than anything, investors will look out for what management says about the contingency plans they will deploy to withstand the impact of Britain's exit from European Union (EU).

H N Menon at 12:16 PM - Jul 14, 2016 ( )

cash i bkd at 2504

Sheks M at 12:08 PM - Jul 14, 2016 ( )


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