TCS to share Q4 results, consider dividend today; Varun Beverages shares to turn ex-dividend

Tata Consultancy Services (TCS) will announce its March quarter results and consider paying final dividend for FY23 on Wednesday. Anand Rathi Wealth, National Standard (India) and Dharani Sugars & Chemicals are among other companies that will announce their quarterly results today. Two stocks Varun Beverages and Visaka Industries will turn ex-dividend today while the board of Nestle India will consider dividend payments today.

TCS is expected to report double-digit growth in profit. Its revenue growth in constant currency (CC) is likely to be the highest among peers on a sequential basis, so would be its Ebit margin that is pegged at 25 per cent, analysts suggested.

In rupee terms, TCS' revenue is seen climbing 17 per cent YoY (1.7 per cent QoQ) to Rs 59,200 crore. Motilal Oswal Securities sees revenue for TCS growing 7.6 per cent YoY (1.8 per cent QoQ) to $7,202 million in dollar terms. In CC terms, revenue growth is likely to be at 0.9 per cent QoQ, implying 90 bps currency tailwind, the domestic brokerage said.

Also Read: TCS Q4 results preview: Profit may grow 14-19%; order wins likely in $8.5-10 billion range

Also Read: TCS Q4 results on April 12: Will this IT major perform better than Infosys, HCL Technologies, Wipro and Tech Mahindra?

In terms of revenue growth in CC terms, Nuvama Institutional Equities sees TCS reporting 1.4 per cent sequential growth, which would be highest among its peers. The same brokerage expects Infosys' CC revenue growth at 0.2 per cent, HCL Technologies' at 1.6 per cent, Wipro's de-growth at 0.2 per cent and Tech Mahindra's de-growth at 0.6 per cent on a sequential basis.

Net profit for TCS is seen climbing 14-19 per cent YoY. Nirmal Bang Institutional Equities sees profit for TCS to rise 14.6 per cent YoY to Rs 11,200 crore against a 12.7 per cent growth for Infosys, 9.3 per cent growth for HCL Tech and flat growth for Wipro. HDFC Institutional Equities sees profit for the IT major at Rs 11,227 crore. Nuvama sees profit for TCS jumping 18.6 per cent YoY to Rs 11,769 crore.

Analysts largely see TCS' Ebit margin in 25-25.1 per cent range, an expansion of at least 50 basis points sequentially. This is against 11.9-21.3 per cent Ebit margins for IT peers. Order wins are seen at $8.5-10 billion.

Meanwhile, the IT major may recommend a final dividend for FY23 today. The company boatd would recommend the dividend for the approval of the shareholders at the ensuing 28th Annual General Meeting.

Shares of Varun Beverages would turn ex-dividend today. Varun Beverages had announced an interim dividend of Re 1 per share and the record date for the same is today. The dividend will be paid on April 26.

In the case of Visaka Industries, the company had announced an interim dividend of Rs 7 per share for FY23. The stock will turn ex-dividend today. The dividend will be paid on May 1.

Nestle India has fixed April 21 as the record date for the purpose of final dividend for the FY23 for determining the entitlement of the members to an interim dividend.

Also read: YES Bank shares plunged 30% in 2023 so far. Can this banking stock stage rebound?