India's IT bellwether Tata Consultancy Services (TCS) will kickstart the first quarter (Q1FY24) earnings season by declaring results on July 12. Apart from the financial results, the board of TCS will also consider and approve an interim dividend for the financial year 2023-24. The IT services giant has also fixed July 20, 2023, as the record date for the purpose of the said interim dividend.

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"A meeting of the Board of Directors of Tata Consultancy Services Limited is scheduled to be held on Wednesday, July 12, 2023, inter alia to approve and take on record the audited standalone financial results of the company under Indian Accounting Standards (Ind AS) for the quarter ending June 30, 2023; approve and take on record the audited consolidated financial results of the company and its subsidiaries under Ind AS for the quarter ending June 30, 2023," the company said in a BSE filing.

The interim dividend, if declared, will be paid to the equity shareholders of the company whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as on the record date, TCS said.

TCS stock performance

On Friday, shares of TCS, the second most-valued stock on Dalal Street, settled 2.58 percent higher at Rs 3,298.40 apiece on the NSE. The stock has seen a muted performance in the last one year, with the shares down 0.50 percent.

On TCS, JPMorgan said, “We remain UW (underweight) on the stock as we bake in lower growth from macro concerns in FY24E that will also limit significant margin expansion. Moreover, the unexpected CEO departure could lead to periods of volatility in a time of weaker tech spend and rapidly evolving macro.” It has set a price target at Rs 2,700 by March 2024."

The global brokerage said that a miss can drive 2-3 percent earnings cuts for TCS.

Meanwhile, Motilal Oswal noted that despite demonstrating strong resilience, TCS should anticipate the possibility of a moderate full-year revenue growth in FY24 if similar instances of delayed decision-making and cash conservation from clients reoccur.

Yet the domestic brokerage firm believes, considering TCS’s size, order book, and exposure to long duration orders and portfolio, the IT services giant is well positioned to withstand the weakening macro environment and ride on the anticipated industry growth.

First Published:Jun 30, 2023 5:22 PM IST