Tata Consultancy Services Ltd. (TCS), one of India’s leading information technology firms, has scheduled its Q3 results for January 9. The firm is about to start the financial year 2024-25 where it is bound to release the results for the third quarter.

Multiple leading brokerages have provided estimates for the results and an Economic Times article has shared these estimates, here are the results for TCS that are predicted:

1) TCS Q3 Results Prediction: Revenue

Between 5.2% to 6.4% are the percentages TCS is believed to experience according to several Nomura, JM Financial, Motilal Oswal Financial Services, and Elara Capital reports.

The banking, financial services, and insurance (BFSI) TCS revenue model will provide further signs to the telemetry regarding IT demand in developed markets.

2) TCS Q3 Results Prediction: Profitability

HDFC Securities and Motilal Oswal predict TCS EBIT growth outlook to be at 50 - 80 and Nomura rates them at a 110 bps increase.

HDFC Securities predict a year on year, PAT growth of 2%, while other such as Elara and Motilal Oswal Financial Services estimate a higher growth range between 8-10%.

3) Bargains

As TCS reported of a sceptical approach in signing new deals during the third quarter, BNP recommends to pay attention to the fact that the third quarter included the holiday season while drawing this conclusion.

The report, however, places TCS on the top tier of the large-cap players in this aspect with five transactions, including Bank of Bhutan, Telenor Denmark, Landis + Gyr, Bank of Baroda and Chorley Building Society deals.

4)Q3 Excusal and Their BSNL agreement

Excusal is a suspension so to say or taking an unpaid leave work that has been allocated but not taken for the absence of employment but retaining the status of an employee.

Elara securities hold that Q3 furloughs combined with GCC Aspect of the deals and dwindling earnings from the BSNL deal can result in revenue dip of about 0.8 percent over the last quarter's revenue.

5)Artificial Intelligence  

Also, a key metric that should be tracked is the company's performance in GenAI, which is also a parameter.