tcs share price: TCS shares in focus as company’s board to consider 2nd interim dividend on October 10

TCS will hold a board meeting to take a call on this and will also announce its July-September quarter (Q2FY25) earnings on this day.

The earnings announcement will be followed by a conference call for investors at 7 pm, a company filing post the market hours on Monday said.

The 2QFY25 revenue growth for the overall IT sectors is likely to be decent but could disappoint elevated expectations, Motilal Oswal (MOFSL) said in a preview note.

At the industry level, the domestic brokerage remains enthusiastic about a change in client spending behaviour but believes that the recovery would be gradual and could be initially restricted to some pockets, e.g. US banking.

“That said, we are not too concerned about variance in revenue growth in 2Q and believe it should not lead to a meaningful change in estimates, sentiments, or valuations (short-term gyrations aside). The most important catalyst for the sector now would emerge after 3Q, when client budgets for CY25 would be finalized and the magnitude of changes in client behavior would become clearer. We expect aggregate revenue/EBIT/PAT to grow by 5.1/5.0/5.3% YoY (all in INR terms) for our coverage universe,” MOFSL note said.For the Q2 quarter, MOFSL expects TCS to report “relatively robust” 1% constant currency QoQ growth.TCS had reported a 9% year-on-year growth in its June quarter net profit at Rs 12,040 crore (profit attributable to shareholders of the company), compared to Rs 11,120 crore profit reported in the same quarter last financial year. However, consolidated profit for the period stood at Rs 12,105 crore.

The profit was higher than the Street estimate of Rs 11,900 crore. The company’s board has also recommended a dividend of Rs 10 per share.

The company’s revenue from operations stood at Rs 62,613 crore, which was a 5.4% increase over the Rs 59,381 crore posted by the company in the same period a year ago.

The company had paid a dividend of Rs 10 per share.

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