Deal wins are projected to be strong in a broad range of $7-10 billion.
Meanwhile, hiring is expected to be muted in Q4. Analysts at B&K Securities estimate total headcount for TCS at over 40,000 for FY23 over 100,000 in FY22.
Key monitorables: Investors will look out for cues on demand outlook and pockets of weakness in verticals/geographies. Commentary on exposure to regional banks, impact on BFSI vertical, nature/tenure of deals, sales/deal cycles, pricing, vendor consolidation and attrition will be closely tracked. The focus will also remain on the strategic direction for the company under the new CEO.
Here’s what top brokerages expect:
Jefferies: The brokerage expects TCS’ revenue growth to moderate to 1 per cent quarter on quarter (QoQ) in cc terms (versus 3 per cent growth last year) due to delay in revenue conversion and sales cycles. Ebit margin is expected to expand by 50 bps QoQ driven by higher utilisation and currency tailwinds. It expects deal bookings to remain in the $7- 9 billion with slowdown in deal making offset by large cost-takeout deals.
HDFC Institutional Research: The brokerages expects TCS’ deal bookings to trend higher with expected total contract value of above $8.5 bn supported by Phoenix, Telefonica, Bombardier deals.
Sharekhan: Strong growth across digital service and cloud will lead to 1.1 per cent QoQ revenue growth in CC terms with a likely 110 bps cross currency tailwind, which will result in dollar revenue growth of 2.2 per cent QoQ.