Tech giant Tata Consultancy Services has followed Infosys to sound an alert over its up coming fourth quarter earnings. TCS expects revenues and margins to be lower than third quarter. The company believes that Indian situation remains volatile.
TCS held its mid quarter analyst meet today. The meet assumes importance after Infosys negatively surprised the street with its outlook for Q4 as well as the first half of the next fiscal year. TCS, however, continues to sound extremely positive. They said Q4 growth will be less than Q3. However, Q4 is a seasonally weak quarter and was largely on expected lines for analysts.
With respect to FY15, they continue to sound extremely bullish. They said that there has been no ramp downs or cancellations. There has been no change in the retail vertical fundamentals. Infosys had highlighted that they have seen some pressure in retail hi-tech but that is not corroborated by TCS. They continue to maintain that FY15 is going to be stronger than FY14 and Europe is going to outperform, while the growth for US as well as UK will be inline. They have also assumed that India growth will continue to remain sluggish and discretionary spend will be better.
TCS held its mid quarter analyst meet today. The meet assumes importance after Infosys negatively surprised the street with its outlook for Q4 as well as the first half of the next fiscal year. TCS, however, continues to sound extremely positive. They said Q4 growth will be less than Q3. However, Q4 is a seasonally weak quarter and was largely on expected lines for analysts.
With respect to FY15, they continue to sound extremely bullish. They said that there has been no ramp downs or cancellations. There has been no change in the retail vertical fundamentals. Infosys had highlighted that they have seen some pressure in retail hi-tech but that is not corroborated by TCS. They continue to maintain that FY15 is going to be stronger than FY14 and Europe is going to outperform, while the growth for US as well as UK will be inline. They have also assumed that India growth will continue to remain sluggish and discretionary spend will be better.
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