TCS Q1 Results Review - Heads You Win, Tails You Don’t Lose: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Tata Consultancy Services Ltd.'s Q1 performance reflects signs of recovery and an improving growth trajectory. The strongest sequential growth in the last six quarters at 2.2% QoQ constant currency, growth in headcount following successive decline, improved banking, financial services and insurance composition in deals and commentary of recovery in NorthAm banking are positives. We reckon that the leakages in renewals/ongoing projects have troughed—evident from management commentary that speaks of similar client spending yet better predictability (versus 50/100 basis points variance in the previous quarter). Despite the pressure in discretionary spending, the execution engine remains strong and the current period in FY25E will see margin improvement (pyramid lever) following the wage hike impact in Q1. We continue to believe that growth skew driven by large engagements (related party) and Regional Market aid revenue visibility for FY25E. TCS remains the best play in tier-1 IT to capture more of the same (gradual recovery/superior execution) or spurt in industry demand (strong digital credentials)—heads you win, tails you don’t lose. Maintain Add on TCS with the target price at Rs 4,510, based on 28 times Jun-26E earnings per share. .Click on the attachment to read the full report:.TCS Q1 Results Review - Beat Led By BSNL Ramp-Up, Commentary Status-Quo: Dolat Capital.DISCLAIMERThis 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.

TCS Q1 Results Review - Heads You Win, Tails You Don’t Lose: HDFC Securities

The brokerage believes that growth skew driven by large engagements and regional market aid revenue visibility for FY25E.

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TCS Q1 Results Review - Heads You Win, Tails You Don’t Lose: HDFC Securities

The brokerage believes that growth skew driven by large engagements and regional market aid revenue visibility for FY25E.

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