Shares of Tata Consultancy Services (TCS) dipped as much as 2.38 per cent in morning trade on Thursday ahead of the company’s second quarter earnings to be announced later in the day. At 11.14 am, TCS was trading 1.82 per cent down at Rs 2336.90. The scrip opened the day at Rs 2,355 and had touched a high and low of Rs 2,367.85 and Rs 2,323.25, respectively, in trade so far.
Brokerage Nirmal Bang Institutional Equities Research believes TCS may post 0.8 per cent quarter-on-quarter and 5.1 per cent year-on-year rise in net profit for the quarter ended September 30, 2016. However, Motilal Oswal believes, the IT major may register a net profit of Rs 6,178 crore for July-September period.
For the previous quarter ended June 30, 2016, Tata Consultancy Services reported a consolidated net profit of Rs 6,497 crore, up 1.31 per cent, against Rs 6,413.12 crore in the sequential quarter ended March 31, 2016.
In the past one year, shares of TCS have fallen 8.19 per cent to Rs 2,380.10 till October 10, whereas BSE Sensex gained 4.38 per cent during the same period.
Edelweiss expects EBITDA margins of TCS are expected to expand by 50 basis points on absence of visa cost and operational improvements.