Q3 Results today: TCS, Infosys, HDFC AMC, others to announce Q3 earnings

Q3 results today: The Q3 earnings season officially began today (Thursday, January 11) with the release of Q3FY24 financial results from two major information technology (IT) companies, Tata Consultancy Services Ltd (TCS) and Infosys Ltd. Analysts predict that the commentary by IT management will be more significant than the tepid results.

Also Read: Infosys Q3 Results Live Updates: Infosys share price trade lower ahead of Q3 earnings

The Q3 numbers will be closely watched by market participants, as it is expected that a trend will emerge in response to the Q3 results in the coming days, according to analysts.

Domestic equity benchmark indices, the Sensex and Nifty 50, ended higher on Wednesday’s session led by gains in IT and metal stocks.

Also Read: Stock market today: Sensex, Nifty 50 end higher led by IT, metal stocks; Q3 results eyed

The 30-share BSE Sensex ended higher by 271.50 points or 0.38% at 71,657.71 level while the Nifty 50 closed at 21,618.70 level, up 73.85 points or 0.34%.

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“It was the eleventh trading session when Nifty 50 closed between the narrow range of 21,500 to 21,800. Nifty 50 formed a strong bullish rejection candle indicating a limited downside movement of the market. It is also evident from the weekly option chain where puts have been heavily written.

Also Read: TCS Q3 Results Live Updates: IT major likely to see muted earnings growth; deal wins, demand outlook in focus

As the results season kicks in, corporate performance will decide the market’s future trajectory. Bad results from the IT sector are likely to have a limited impact on the market as the underperformance is already factored in. However, better-than-expected results may propel the market towards the 22,000 level,” said Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy.

Today, apart from TCS and Infosys, a handful of companies will be releasing their Q3 results, including 5paisa Capital Ltd, Agi Infra Ltd, Fundviser Capital (India) Ltd, GTPL Hathway Ltd, Gujarat Hotels Ltd, HDFC Asset Management Company Ltd, Kenvi Jewels Ltd, Longview Tea Company Ltd, Mercury Trade Links Ltd, Plastiblends India Ltd, Pro Fin Capital Services Ltd, Quasar India Ltd, Rajoo Engineers Ltd, Sonalis Consumer Products Ltd, Shekhawati Poly-Yarn Ltd, and Vijay Textiles Ltd.

Infosys

The company is expected to report weak Q3 results with a sequential drop in revenues and fall in margins. The overall Indian IT sector is expected to report subdued earnings for the third quarter FY24 as the ongoing weakness in IT services demand has worsened due to unexpectedly high furloughs.

Infosys is expected to report a net profit of ₹6,172 crore during the quarter ended December 2023, registering a drop of 0.64% from ₹6,212 crore in the September quarter.

The company’s operating margin is likely to contract by 100 basis points (bps) QoQ to 20.2% impacted due to two months of wage hikes impact in the quarter and furloughs.

Analysts expect Infosys to maintain its guidance on the back of healthy deal wins and strong pipeline, which are expected to support Q4FY24 growth.

Also Read: Infosys Q3 results preview: Expect weak earnings with drop in revenue; margins to contract

TCS

TCS is expected to report a tepid growth in revenue and profit after tax (PAT) for the third quarter of the current financial year (Q3FY24) on account of the prevailing weakness in discretionary spending in key markets in the West.

Apart from the numbers, deal wins, outlook on near-term demand and BFSI segment are the key monitorables.

Motilal Oswal expects TCS to report a 7 per cent YoY growth in reported PAT and 2.5 per cent YoY growth in overall revenue in the Indian rupee terms.

IT services revenue in dollar terms may see a decline of 0.7 per cent quarter-on-quarter (QoQ).

“The growth is expected to stay muted due to furloughs and weak macros. Expect 0.4 per cent QoQ CC (constant currency) growth for Q3. EBIT percentage is expected to see a marginal improvement of 20 bps QoQ due to the absence of operating leverage,” said Motilal Oswal.

Also Read: TCS Q3 Results Preview: Expect muted earnings growth; deal wins, outlook on near-term demand to be in focus

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