Shares of IT services major Tata Consultancy Services (TCS) declined more than 1.5 percent as investors adopted a cautious stance ahead of the announcement of its financial results for the March quarter and financial year 2023.
The board of TCS will meet on April 12 (Wednesday) to approve the financial results of the company for the quarter and year ending March 2023.
The board is also expected to consider and recommend a final dividend, if any, for FY2022-23 at the said meeting.
A CNBC-TV18 poll expects TCS' revenue growth for the quarter to be in the low single-digits on a sequential basis. Operating margin may expand by 50 basis points compared to the December quarter.
On a constant currency basis, TCS is likely to report sequential growth of 1 percent. Nomura has the highest growth estimate for TCS at 1.7 percent, while ICICI Direct has the lowest growth estimate at 0.4 percent.
The company in February announced its biggest deal worth USD 700 million of 2022-2023 fiscal — an expansion of long-standing partnership with UK’s Phoenix Group to digitally transform its insurance business ReAssure using TCS technology BaNCS.
TCS reported a revenue growth of 2.2 percent in terms of constant currency in the December quarter, implying a slowdown on a sequential basis.
Shares of TCS are trading 1.8 percent lower at Rs 3,206. The stock is among the top losers on the Nifty 50 and the Nifty IT index.
