Following the announcement of robust second quarter earnings by Infosys, investors will now be looking at India's largest IT firm Tata Consultancy Services (TCS), which declares its results on Tuesday.
The company's results had failed to cheer the markets in the past four quarters.
TCS posted a revenue growth of 3.5% in the April-June quarter, which was just above analysts' expectations but below the 4.5% growth recorded by Infosys.
Analysts at BNP Paribas expect TCS to post a sequential revenue growth of 3.3% in the July-September quarter, Livemint reported.
Infosys on Monday announced that its net profit went up by 9.8% in the September quarter on a sequential basis.
However, Infosys revised down its dollar revenue forecast to 6.4-8.4% in dollar terms, from a previous estimate of 7-9%, which led to a plunge in its stock prices on the bourses.
Meanwhile, markets will remain focused on TCS management commentary on demand forecast to estimate earning potential of the company in the current fiscal year.
Revenue growth of the Mumbai-based IT major almost remained flat in the last two quarters of the fiscal year ending March 2015, as the second half is generally considered weak for IT companies.
The company's growth in insurance and energy verticals will attract investors' attention, as its revenues from both the verticals have been under pressure for the past one year. A slowdown in Latin America and Japan also weighed on the company's growth in the first quarter. So, its revenues from different regions will be tracked by investors.
Investors will also closely watch its revenues from digital space after the company announced that it had contributed 12.5% of the overall revenues in the June quarter.
Besides, its attrition rate for the quarter will also be monitored; the company had reported 15.1% attrition for the quarter ending 30 June.
