The Indian software industry has had a dream run over the decades interspersed with a hiccup here and there, and leading the pack has mostly always been Tata Consultancy Services. With nimble rivals like Infosys, Wipro, Tech Mahindra and HCL Technologies posing fierce rivalry, TCS has had its job cut out to stay ahead, quarter by quarter and year by year. Of course, investors must never forget the most important factor regarding TCS – that it is the cash cow for the huge Tata empire and this is unlikely to change anytime soon for the salt-to-software conglomerate. Notably, it is also expected to report a dividend for the fiscal ending March 31, 2024, Mint says. So, what has been happening at the TCS HQ as far as the latest quarterly results are concerned?
TCS Q4 results
After market hours, TCS will be revealing its Q4 results on April 12, which is a Friday. Among the software giants, it will be first to do so.
TCS Deal wins
Considering that this is where the future well-being mostly resides, deal wins will be the key factor to watch for investors looking to see which way the performance will head and the same about the stock.
What we have so far are the December, 2023 (Q3) numbers to go by and at that time TCS had indicated it had won deals worth $8.1 billion.
What will Q4 report? According to Kotak Institutional Equities it may well reveal deal wins to the tune of $10 billion for the Q4 period. Among these, Mint reported would be the $2.5 billion Aviva deal win. However, it is a part of the existing collaboration.
Hirings and Exits
One of the biggest hints provided in the inner workings of a company are its hiring trends and to an extent attrition levels. Notably, TCS hiring has been on a downward side and CNBC TV18 reports that dropped off by 12,900 stretching across a 5 quarter period. Q3 number reported attrition sliding to 13.3%.
TCS Dividend announcements
In what will be music to the ears of shareholders, the chances of a dividend announcement are strong, Mint reports. TCS had declared a total dividend of ₹69 for FY23. Notably, in Q3 of this fiscal, TCS declared dividend of ₹18.
Headwinds the sector faces
All the tech majors are expected to face head winds during Q4 and the same has been highlighted by Accenture with its latest cut in guidance.
Growth or not?
According to analysts, the latest quarter may well be moderate and the growth muted at best. If that comes to pass, it will be in line with expectations.
“Revenue growth is likely to be between -1.5% and +4.5%…,” analysts at Nuvama Institutional Equities were quoted as saying by Mint.
