The Q1 earnings season kicks off today with IT giant Tata Consultancy Services (TCS) set to report its numbers later in the day. Most of the IT stocks have had a good run and are back to their pre-COVID levels. Both TCS, as well as Infosys, have recovered 50 percent from their 52-week lows.
The key reason is that stocks like TCS and Infosys are seen as the big beneficiaries of work-from-home (WFH) that could turn out to be the new normal. TCS, in particular, benefits on account of its large size and diversified base.
However, it is going to be a weak quarter for the firm as the revenue is expected to decline. Revenues, according to CNBC-TV18’s poll, could be down about 5.7 percent. In constant currency terms, the revenues could see a decline of 5 percent on a quarter-on-quarter (QoQ) basis which will be worse than what was seen in Q4.
CNBC-TV18’s Reema Tendulkar gives more details