By Kosaku Narioka
Tata Consultancy Services Ltd. is scheduled to report its fourth-quarter results on Wednesday. Here’s what you need to know:
NET PROFIT FORECAST: Tata Consultancy Services is expected to post a 16% rise in net profit to 114.72 billion Indian rupees ($1.40 billion) for the quarter ended March 31, according to a poll of analysts by FactSet. That’s compared with INR99.26 billion net profit during the same period a year earlier.
REVENUE FORECAST: Fourth-quarter revenue is estimated to have increased 17% from a year earlier to INR591.25 billion, according to the FactSet poll.
WHAT TO WATCH:
–DIVIDEND: The company has said its board will recommend a final dividend, if any, at its scheduled meeting on Wednesday. In January, it announced a third interim dividend of INR8 per share and a special dividend of INR67. Investors are closely watching any more dividends to be distributed for the fiscal year ended March.
–BANK CLIENTS: The banking, financial services and insurance sector is by far the largest client segment for the information-technology services provider. Third-quarter profit from the financial industry rose 15% from a year earlier. Investors are focusing on the pace of growth in the segment as the recent banking-sector turmoil has cast a shadow on the financial industry outlook.
–HEADCOUNT: The company reduced the workforce by a net 2,197 during its third quarter to 613,974, though it said productivity improved partly through investments in organic talent development. Investors are paying attention to headcount and productivity growth.
Write to Kosaku Narioka at [email protected]
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