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TCS Q2 net seen down at Rs. 6260 crore, dollar revenue may rise 1.8 pct

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ANI New Delhi [India]
Last Updated : Oct 13 2016 | 2:28 PM IST

Technology major TCS is likely to report tepid July-September quarter as per the poll conducted by CNBC-TV18.

It is likely that the net profit may fall 0.9 percent to Rs. 6260 crore in Q2FY17 from Rs. 6317 crore in the last quarter. The company's dollar revenue may rise marginally to 1.8 percent to USD 4440 million compared to USD 4362 million while in rupee terms it may be up 1.5 percent at Rs. 29738 crore versus Rs. 29305 crore quarter-on-quarter.

During the quarter, TCS's EBIT may stand at Rs. 7530 crore from Rs. 7374 crore or at 25.3 percent versus 25.2 percent (QoQ).

The company has already warned the market about its customer outlook marked by abundant caution.

As per analysts, TCS Q2 constant currency growth is seen at 2.5-2.6 percent versus 3.1 percent (QOQ) despite the fact that September quarter traditionally benefits from seasonal factors including higher working days and start of projects.

Its full year margin guidance band of 26-28 percent may be at risk, this quarter it will be lower due to lower growth and cross currency headwinds.

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Also, the company's Q1FY17 margins at 25.16 percent were below the guided band due to wages.

It has 13 percent exposure to British pound which has seen an average depreciation of 8.5 percent.

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First Published: Oct 13 2016 | 2:28 PM IST

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