Brokerage firm Motilal Oswal Financial Services said that it expects TCS to report 1.6 per cent QoQ growth in CC (constant currency) owing to deal scale-up including the BSNL deal. PAT might drop 2.9 per cent QoQ but rise 9.2 per cent YoY and EBIT margin may contract by 150 bps QoQ due to wage hikes in Q1FY25, the brokerage said, adding, “The deal pipeline should remain healthy. Outlook on near-term demand & pricing environment, BFSI, and deal wins are key monitorables.”

Kotak Institutional Equities said that it expects weak revenues in financial services and telecom, wage revision and a likely decline in utilisation rates may shrink the EBIT margin by 140 bps QoQ.

“Focus will be on TCS’s ability to leverage its strengths in ‘Run’ spends and outperform on revenue growth in FY25E. TCS has also won quite a few mega deals, which can contribute to nearly 2.5 per cent growth in FY25E,” Kotak said, adding, “We expect investor focus on (1) the outlook in financial services vertical and any loss of share to insourcing at large clients, (2) the state of spending in the impacted North America market and financial services, hi-tech and telecom verticals, (3) pipeline of deals, (4) state of discretionary spending and what would it take to revive the same, (5) the impact of GCC ramp-up on the growth of companies, and (6) levers to defend and increase margins.”