Q4 Earnings: Tata Consultancy Services or TCS, Infosys, and HCL Tech, the major Information Technology (IT) behemoths, are considering paying a final dividend for the fiscal year 2021-22 (FY22), as well as announcing fourth-quarter results for the fiscal year ended March 31, 2022.
Infosys informed NSE on April 1, 2022, that it will release results for the fourth quarter and year ended March 31, 2022, at 4 p.m. Indian Standard Time (IST) on Wednesday, April 13, 2022. The board of directors of the company will publish audited standalone and audited consolidated financial results for the fiscal year ending March 31, 2022 at the meeting. In addition, a final dividend for the fiscal year ending March 31, 2022 would be recommended.
Meanwhile, TCS‘ board will meet on April 11 to approve and take on record the audited financial results of the company for Q4 and the year ending March. The company will also consider declaring dividends while announcing the results.
HCL has notified BSE that the company’s Board of Directors would meet on April 20 & 21, 2022 to discuss the company’s audited financial results for the fiscal year ended March 31, 2022, as well as the payment of an interim dividend for the fiscal year 2022-23. “The items relating to financial results and payment of Interim dividend shall be considered by the Board on April 21, 2022. The Record Date for determining the entitlement of the shareholders for the payment of aforesaid interim dividend shall be April 29, 2022, subject to the approval of the interim dividend by the Board of Directors,” the company has informed BSE.
Recently, bellwether company Accenture forecast third-quarter revenue above estimates with growing demand for cloud and security-related services as more and more businesses move to a hybrid work model.
The sector’s revenue growth is expected to moderate in the March quarter, while margins are expected to take a hit due to continued high attrition, according to market analysts.
Analysts at ICICI Direct expect margins to contract QoQ despite the industry continuing to add record freshers. “The attrition across companies would continue to be high and, hence, the cost to backfill attrition (at higher costs) and costs related to retention, bonus, rationalisation of compensations are expected to put pressure on margins. We expect all IT companies to report a decline in EBIT margins sequentially in the range of 20-80 bps,” it added.
Among individual companies, TCS’s revenue growth momentum is expected to continue in Q4 while margins are likely to take a hit due to higher manpower expenses. TCS is expected to register 3 per cent QoQ growth in constant currency led by continued improvement in demand from BFSI, healthcare and retail, acceleration in digital technologies, ramp up of deals.
Meanwhile, Infosys is expected to register 3 per cent QoQ growth in constant currency led by momentum from financial services, retail, communication, energy and manufacturing. Wipro is projected to report 3.5 per cent QoQ constant currency growth in revenues in IT services.
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