IT shares are in the limelight in a strong market ahead of the TCS Q2 results scheduled post market hours. India’s largest IT services company will be the first to announce its second quarter earnings on Friday. Infosys, TCS, Tech Mahindra and HCL Tech constitute four of the top six Sensex gainers for the day, registering gains of 1-2 per cent each, in a firm market.
The markets will closely track the company’s revenues during the quarter, and also keenly watch the deal pipeline and management’s commentary about the company and business environment, according to analysts. TCS does not provide a formal revenue growth guidance, unlike other IT companies.
TCS had reported a net profit of Rs 9,008 crore in the June quarter, up 28.5 per cent compared to Rs 7.008 crore in the corresponding quarter a year ago, driven by higher demand for cloud services and robust growth in its banking and finance business.
The company’s revenue from operations grew 18.5 per cent to Rs 45,411 crore in the June quarter and total income increased to Rs 46,132 crore.
At 1:05 pm, TCS shares were trading higher by 1.5 per cent at Rs 3952.75 on the BSE as against the 0.5 per cent rise in the benchmark indices.