Ahead of IT major’s June quarter results, in Tuesday’s trade, shares of Tata Consultancy Services (TCS) declined by 2 per cent.
While TCS has been facing significant decline in the shares, profit is expected to drop by 4 to 6 per cents whereas the margins are seen falling 90 to 150 basis points which has been led by wage hikes and rupee appreciation.
However, Tata Group is expected to report a 2.5-3.2 per cent quarter-on-quarter (QoQ) rise in revenue growth in constant currency (CC) terms.
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Emkay Global Financial Services, which sees 3 per cent CC revenue growth for TCS, said that the listed aristocracy of TCS in US have highlighted slow decision making in financial services vertical. It said that while the margin for TCS improved in FY19, they remained below the guided standard range of 26-28 per cent. The brokerage expects hiring trends to will be in focus.