Stock in India's leading software services provider Tata Consultancy Services (TCS) gained around 3 per cent to Rs 1,331.05 a share on the Bombay Stock Exchange (BSE) on Monday, ahead of the announcement of the company's third-quarter earnings.

Investors have been showing more interest in TCS shares since Friday, after Infosys reported better-than-expected results for the October to December quarter.

Analysts expect the company's revenues in dollar terms to jump by 3 per cent quarter-on-quarter to US$2,939.5 million; and by 2.1 per cent quarter-on-quarter to Rs 15,950 crore in rupee terms in the three months through December last year.

Analysts also expect earnings before interest & tax (EBIT) to jump by 1.1 per cent quarter-on-quarter to Rs 4,224 crore. But, they are also expecting EBIT margin to go down by 25 basis points (bps) to 26.5 per cent in the quarter under review, down from 26.75 per cent in the previous quarter.

However, the company's profit after tax is expected to slip by 3 per cent quarter-on-quarter to Rs 3,410 crore during the same three months.

Analysts are of the view that TCS could see its quarter-on-quarter profit decline because of margin decline and FOREX loss.

On last Friday, Infosys surprised the street by reporting better-than-expected quarterly results for the final quarter of last year. It reported quarter-on-quarter unchanged consolidated net profit of Rs 2,369 crore, and revenues of Rs 10,424 crore, up 6 per cent from the previous quarter.