TCS, Infosys, Wipro to report Q3 results on January 12
TCS used to be the first company to announce its earnings, followed by Infosys and then Wipro; However, this chronology has been broken in recent quarters with 2 companies or 3 companies scheduling their results announcement on the same day
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Bengaluru: Indian IT services companies are all set to kick start the earnings season for this year with Tata Consultancy Services (TCS), Infosys and Wipro announcing their results on January 12, 2022.
This is perhaps the first time when all three IT majors will hold their earnings conference on the same day of the month.
Earlier, there were instances when two IT majors had announced their quarterly earnings on the same date. TCS used to be the first company to announce its earnings, followed by Infosys and then Wipro. However, this chronology has been broken in recent quarters with two companies or three companies (as this time) scheduling their results announcement on the same day.
Analysts are of the opinion that though date doesn't hold much significance on the quality of earnings, early earnings announcement is usually indicative of good results. This also shows the confidence of IT majors on the growth prospects going ahead.
For the third quarter ending December, IT companies are likely to continue their strong run in revenue growth rates. Moreover, despite pressure on margins, falling rupee and higher offshoring will support the operating margin levels of large IT companies.
After the stellar performance of Accenture, most analyst expect the same momentum to reflect on Indian IT firms' performance.
Accenture, which follows the September-August financial year cycle, has posted stellar first quarter results this month.
On the back of robust demand, the global ITgiant has revised its full-year revenue guidance to 19-22 per cent from 12 to 15 percent forecast earlier. Similarly, new bookings were at a record $16.8 billion in the firstquarter, a 30 per cent increase over the same period last year. Significantly,consulting bookings of $9.4 billion, reflecting rising traction.
"Accenture's blockbusterperformance and solid commentary support our thesis of a robust tech upcycle thatwould continue for four-five years," brokerage firm Edelweiss said in a report.
Meanwhile, market watchers will be keen on management commentary on deal pipeline, demand environment, and pricing. Moreover, resuming work from offices and commentary on attrition will be watched carefully.
