Tata Consultancy Services (TCS) is anticipated to report restrained constant currency (cc) revenue growth for Q2 2023 due to ongoing global economic uncertainties affecting client spending. In rupee terms, TCS may see a 9% YoY profit increase to Rs 11,396 crore. Revenue is projected to show a 9% YoY growth to Rs 60,293 crore.
EBIT margin is expected to improve sequentially by 55-90 basis points to reach up to 24.1%, attributed to currency benefits, enhanced efficiency, and prior wage hikes. Investors will be keenly observing the buyback announcement, demand trends, large deal wins, and staffing figures. Analysts predict a 1% cc growth, moderated by industry challenges, and a margin improvement of 60 bps due to the absence of Q1 wage hikes.