TCS Share Price Performance Ahead Of Q2; Cancels Press Conference On Thursday Due To Last Rites Of Ratan Tata

Tata Consultancy Services (TCS), the largest giant of Tata Group, on Thursday cancelled its press conference for second quarterly earnings for FY25, due to the last rites of their former leader Ratan Tata who died in Mumbai hospital last night. However, TCS will release its Q2FY25 earnings report and take up the analysts' call as per schedule. Ahead of results, TCS share price traded higher.

At the time of writing, TCS' share price is up by nearly 0.7% to trade at Rs 4,281 per share on BSE, with a market cap at Rs 15,48,903.27 crore. The stock jumped nearly a per cent and touched an intraday high of Rs 4290.20 apiece in the early trade.

TCS is the largest IT company in India and the second largest in India after Reliance in terms of market capitalisation.

As per PTI report, TCS has cancelled a press conference scheduled on Thursday evening to announce its second quarter performance, company officials said.

Originally, the Q2 earnings press conference was scheduled to take place at 1730 hours on Thursday. However, due to the last rites of Ratan Tata which will take place at central Mumbai's Worli on Thursday, after 4 pm, TCS decided to not go ahead with the conference.

Nonetheless, TCS will inform the exchange about its September 2024 quarterly earnings after the board meeting. Also, the 7 pm analysts call will take place as per schedule.

Ratan Tata died at the age of 86, in the late hours of Wednesday, October 9, 2024. The chairman emeritus of Tata Sons, passed away in a hospital in Mumbai where he was receiving critical treatment.

TCS Q2 Results Preview:

In Q2FY25, brokerage JM Financial expects TCS' constant currency revenue growth at 0.9% with an 80bps cross currency tailwind translating into 1.6% QoQ USD rev growth.

JM estimates a USD 75mn incremental contribution from the BSNL deal, adding it said, "ex regional markets (where BSNL is housed), we expect 0.7% USD revenue growth for TCS (flat in cc)."

Further, JM's note said, "Softer growth in the developed market and lower margin profile of BSNL will be key margin headwinds, resulting in flat margin."

JM Financial is expecting revenue at Rs 63,917.7 crore in Q2FY25, up by 7.1% YoY and 2.4% QoQ. While PAT is seen at Rs 12,308.8 crore, registering growth of 8.5% YoY and 2.2% QoQ by JM.

TCS has announced that in the board meeting on October 10, the board will consider the declaration of a second interim dividend to the equity shareholders. The company has fixed October 18, as the record date to determine eligible shareholders for the upcoming dividend.

For FY25, earlier, TCS delivered the first interim dividend of 1,000% worth Rs 10 per share. Overall, in FY24, the company paid up to a 7,300% dividend valuing Rs 73 per share.

On the stock price, Sharekhan has recommended BUY for a target price of Rs 5,230 apiece. While HDFC Securities suggested to ADD for a target price of Rs 4,670. Phillip Capital also advised to BUY for Rs 4,870 target. JM Financial has recommended HOLD on TCS for target price of Rs 4,130 apiece.