Wipro, Infosys ADRs Fall 2% After TCS Q4 Results
Why it matters: Wipro and Infosys ADRs dropped over 2%, indicating potential market sentiment for Indian IT stocks on Friday.
- Wipro and Infosys ADRs fell over 2% after TCS's Q4 results, signaling a potentially muted opening for these stocks on Friday.
- TCS reported a 12% net profit growth to Rs 13,718 crore and a 10% revenue increase to Rs 70,698 crore in Q4, securing $12 billion in new deals.
- TCS management highlighted a strong focus on AI, with annual AI revenue exceeding $2.3 billion and AI now embedded across core service lines, not just a separate vertical.
- Analysts largely found TCS's numbers in line with expectations, noting strong deal wins as a positive, with Arihant Capital Markets maintaining an 'Accumulate' rating on the stock.
- CFO Samir Seksaria confirmed TCS expanded margins while investing in AI-led growth, indicating AI spending is not yet impacting profitability.
Wipro and Infosys ADRs tumbled over 2% following TCS's Q4 earnings report, which showed a 12% net profit growth and $12 billion in new deals, largely meeting analyst expectations. TCS management emphasized a strategic shift towards AI integration across services, with annual AI revenue crossing $2.3 billion, while still expanding margins despite increased AI investments.
