TCS and Infosys will kickstart earnings for Dalal street this week, with both stocks perched at 52 week highs, this is what you can expect from the boardroom-:
- Brokerages expect to see revenue growth between 1.4-3.6% (QoQ) in Q4 driven by strong demand environment.
- Large wage hikes across the board by companies in March will keep margins flat
- TCS will likely to lead growth with steady margins, Infosys and HCL Tech are likely to see sharp margin contraction
- Demand outlook looks firm as deal activity stays close to all-time high for a second straight quarter
- ISG index that tracks global tech deals now expects 5% YoY growth in average revenue per contract in 2021 vs 3% earlier and also indicated 4-7 mega deals, that are still in works.
Alert: TCS reports Earnings on April 12, Infosys April 14