Tata Consultancy Services (NS:TCS) is preparing for its Q3 results release on October 11, with expectations of sequential dollar revenue growth and an expansion in EBIT margin, according to BNP Paribas (OTC:BNPQY). The company's third quarter performance is predicted to be influenced by CEO Krithivasan's strategies, key partnerships, and a potential second interim dividend. According to InvestingPro Data, TCS's market cap stands at $113.58 million, indicating a significant size in the IT sector.
Analysts forecast a 9-11% rise in profit for the upcoming quarter, with a net profit expected to reach INR 11,415 crore and sales predicted at INR 60,283.60 crore. These figures could potentially surpass rival Infosys (NS:INFY). The EBIT margin is expected to expand by 69 basis points to 23.8%, as per BNP Paribas. This aligns with InvestingPro Tips which highlights TCS's consistent increase in earnings per share and its operation with a high return on assets.
Motilal Oswal Securities has slightly different expectations, predicting a profit of INR 11,610 crore and sales of INR 60,400 crore. They also project a higher EBIT margin of 24%. The company's P/E ratio, according to InvestingPro Data, is -0.61, which suggests investors are expecting higher earnings in the future.
The anticipated growth in revenue is attributed to a sequential dollar revenue growth of 1.5%. This expected performance represents the impact of CEO Krithivasan's strategic decisions and key partnerships entered into during this period. InvestingPro Tips also notes that TCS is a prominent player in the IT Services industry, which can be a contributing factor to its financial performance.
As the release date nears, investors will be keeping a close eye on TCS's Q3 results and its potential implications for the broader IT sector. This is particularly relevant given the company's recent performance, with a 1-week price total return of 18.18%, as per InvestingPro Data. For more insights like these, consider exploring InvestingPro which provides numerous additional tips and real-time metrics.
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