TCS earnings may excite the street thanks to the 14 new deals in last three months
Flourish chart/BSE data
- The demand from clients to migrate to cloud servers and to implement digital transformation has been strong.
- From Sony Liv to London banks, the Tata Group company has signed on many new clients in the three months ending September.
- TCS will be the first among IT companies to release September quarter earnings on October 8.
- Check out the latest news and updates on Business Insider.
AdvertisementTata Consultancy Services (TCS) is expected to kick off the earnings seasons with strong growth numbers. The fact it signed as many as 14 new deals in the last three months ending September is a sign that the demand for digital transformation and migration to cloud services remains strong.
Most analysts expect around 5% revenue growth in the Jul-Sep quarter compared to the preceding three months.
|Revenue forecast by brokerages||% QoQ growth|
Analysts at Goldman Sachs expect the trend in migration to cloud services will continue for at least 3-5 years more. A Phillips Capital report said that the strong momentum in client spending will convert strong bookings to revenue.
The 14 new deals signed on TCS is more than any of its peers including Infosys, Tech Mahindra and HCL Technologies.
|John Wiley & Sons||Communication & media|
|SonyLIV||Communication & media|
|Converge ICT Solutions||Communication & media|
|Dutch Open||Communication & media|
|Neptune Energy||Energy & utility|
|Avianca||Travel & transportation|
|Transport for London||Travel & transportation|
|Apoteket||Healthcare & pharma|
However, the Indian IT services behemoth’s stock has not performed well in the last one month as shares of the company have fallen 2.54%. Most of the brokerages expect the company’s stock to cross the ₹4,000 mark or even more.
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