Tata Consultancy Services will be reporting its quarterly results on Thursday for the fourth quarter of the current financial year. There are expectations that the IT bellwether might post muted quarterly earnings and to set off that impact the company might announce a dividend as well.
Here are four things to know before TCS’ Q4 FY25 earnings today-
TCS dividend announcement
The company’s board is expected to approve a final dividend along with the declaration of Q4 results. “…recommend a final dividend, if any, on the equity shares of the Company for the financial year ending March 31, 2025, for the approval of the shareholders at the ensuing 30th Annual General Meeting,” said the company. However, the company didn’t tell the dividend record date, payment date, and amount.
TCS Q4 expectations
IT companies will report muted earnings in the fourth quarter of the financial year 2025-25, according to experts. “We expect IT earnings to remain muted with a cautious FY26E guidance,” said Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services. The investors can focus on key areas like recession in the midst of a tech upgrade cycle, AI tech adoption, and opportunities for Indian IT companies. “We expect a 90-140 bps cut in EBIT margins compared to our base-case scenario for Tier 1 IT stocks,” said Kotak Institutional Equities.
TCS Q4: Impact of tariff
The management commentary on the deal environment will be crucial as Trump tariffs are one of the biggest headwinds for growth globally. He has now announced a 90-day Tariff pause but TCS’ outlook will be indicative of the growth environment going forward in the backdrop of current developments. However, TCS has been making plans to increase investment in Japan, Latin America, and South Europe to cushion impact in the US.
TCS Q3 results
TCS’ net profit for the third quarter rose to Rs 12,380 crore, up 11.9% YoY, compared to Rs 11,058 crore in the same quarter of FY24. However, the company saw an increase in net profit due to a one-time legal claim settlement of Rs 958, if this is offset then it’s a growth of 5.5% YoY. The revenue of Tata Froup’s IT company grew 5.6% to Rs 63,973 crore in Q3 FY25.
TCS stock performance
The share price of TCS has fallen more than 15% in Q4 or between January to March. The stock has declined by 6.4% in the last five trading sessions. IT bellwether has erased 10% of investors’ wealth in the last one month and 23% in the last six months. The stock price of TCS has wiped out 19% of its value in the last one year.