TCS Q2 Results Review - BSNL Ramp-Up Continues To Fuel Growth: Motilal Oswal

Motilal Oswal Report

Tata Consultancy Services Ltd. reported revenue of $7.6 billion in Q2 FY25, up 2.2% QoQ in USD terms, beating our estimate of ~1.6%. Growth was driven by India (up 21.3% QoQ/93.2% YoY, aided by BSNL ramp-up) and UK (up 2.8% QoQ), while North America was down 1.7% QoQ.

Ebit margins came in ~40 basis points below our estimate at 24.1%. Profit after tax was down 1.2% QoQ/up 5.1% YoY at Rs 120 billion (4.1% below our est. of Rs 125 billion).

For H1 FY25, TCS’s revenue/Ebit/PAT increased by 6.5%/9.5%/6.8% compared to H1 FY24. Free cash flow conversion came in at 86% for H1 FY25 vs. 95% for H1 FY24.

TCS reported a deal total contract value of $8.6 billion, within its usual range, up 4% QoQ and down 23% YoY. The book-to-bill ratio was 1.1 times.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.