TCS Q3 Results Review - Inline Operating Performance; Deal Booking Robust At $8.1 Billion: Yes 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..Yes Securities Report.Tata Consultancy Services Ltd. reported inline operating performance for the quarter. It reported USD revenue growth of 1.0% QoQ (up 1.7% YoY in constant currency terms); while Indian rupee reported growth was 1.5% QoQ. The revenue growth was led by strong performance in energy and utilities (up 11.8% YoY cc terms) and manufacturing (up 7.0% YoY cc terms). Ebit margin decreased by 83 bps QoQ to 23.4% led by seasonal furloughs. Last twelve months attrition was down 160 bps QoQ to 13.3%. The near term demand environment remains challenging as clients remain cautious across verticals and are taking longer time for decision making. It has resulted in slowing down of discretionary IT projects and this continues to impact near term revenue performance. Also, it continues to work on utilising Generative AI in select use cases for client related projects. The operating margin is expected to improve over next two quarters led by improving employee pyramid and falling employee attrition. We estimate revenue compound annual growth rate of 10.4% over FY23‐26E with average Ebit margin of 24.8%. We maintain our 'Add' rating on the stock with revised target price of Rs 4,175/share at 25 times on FY26E earnings per share. The stock trades at price-to-earning of 25.8 times/22.4 times on FY25E/FY26E EPS..Click on the attachment to read the full report:.TCS Q3 Results Review - Macro Uncertainty Expected To Reduce In Medium Term: IDBI 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 Q3 Results Review - Inline Operating Performance; Deal Booking Robust At $8.1 Billion: Yes Securities

The revenue growth was led by strong performance in energy and utilities (up 11.8% YoY cc terms) and manufacturing (up 7.0% YoY cc terms).

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TCS Q3 Results Review - Inline Operating Performance; Deal Booking Robust At $8.1 Billion: Yes Securities

The revenue growth was led by strong performance in energy and utilities (up 11.8% YoY cc terms) and manufacturing (up 7.0% YoY cc terms).

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