Of the five major Indian IT services companies, two — TCS and Infosys — have declared their December quarter (Q3) results. Investors and analysts would now wait for the other three — Wipro, HCL Technologies and Tech Mahindra.
HCL Technologies and Wipro will be declaring their results on January 24 and 25 respectively, while Tech Mahindra will announce its Q3 financial performance on January 30.
TCS reported 10.9 percent increase in consolidated net profit to Rs 6,778 crore from Rs 6,110 crore in the corresponding quarter last financial year, while total income at Rs 29,735 crore in Q3 marks an increase of 8.7 percent YoY and 1.5 percent sequentially.
In dollar terms, total income stood at $4,387 million. Digital revenues accounted for 16.8 percent of the total revenues and grew 30.8 percent YoY.
The company also declared a third interim dividend of Rs 6.50 per share.
Infosys, India's second-largest IT software services exporter, reported 7 percent YoY increase in net profit to Rs 3,708 crore while total income grew 8.6 percent YoY to Rs 17,273 crore.
"Taking into account seasonal and other additional headwinds for the quarter, our Q3 revenue performance was broadly in line with our expectations," Vishal Sikka, CEO and MD, Infosys, said in the company's regulatory filing to the BSE.
The dampener was in the form of yet another downward revenue guidance to 7.2-7.6 percent from the earlier 7.5-8.5 percent for the current financial year (8.4-8.8 percent in constant currency terms).
Here is the projection for Wipro, HCL Technologies and Tech Mahindra:
Wipro could post 1.3 percent growth fall in revenues in CC terms on a sequential basis to $1,914 million, aided by 0.3 percent QoQ CC organic growth from Appirio (1-month revenue) and net profit is expected to come in at Rs 2,190 crore, driven by 5.8 percent QoQ growth on account of improved profitability and higher other income, Motilal Oswal Securities Ltd. (MOSL) said in its preview note. IDBI Capital Markets has projected 1.5 percent QoQ revenue growth in CC terms to $2,032 million. "We expect consolidation of Appirio to add $15 milliion to the revenue," the brokerage said in its note.
Tech Mahindra is expected to post 3.1 percent sequential growth in constant currency (CC) terms to $1,091 million, said MOSL, while IDBI Capital Markets estimates it at 3.5 percent CC growth sequentially, lead by core-business growth, enterprise segment and M&As. Net profit is likely to come at Rs 727 crore, translating into a growth of 12.8 percent sequential growth, added MOSL.
HCL Technologies is expected to post 2.1 percent growth in CC terms to $1,735 million, with net profit estimated at Rs 1,937.5 crore, down 2.1 percent, QoQ, according to MOSL. The revenues are likely to come in at $1,741 million at 2.5 percent growth rate sequentially, IDBI Capital Markets said.
On Friday, Wipro ended at Rs 484, HCL Techologies at Rs 847 and Tech Mahindra at Rs 489 on the BSE.