BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Tata Consultancy Services Ltd. delivered 4% QoQ constant currency revenue growth (our estimate: 4.5%) and Ebit margin of 25.6% (60 basis points below estimate) in Q2 FY22.
Profit after tax was supported by a higher-than-expected forex gain.
Significantly higher-than-expected cross currency headwind led to 2.9% QoQ growth in U.S. dollar terms.
Talent costs, cross currency impact and investments seem to have eaten into the anticipated margin increase.
Total contract was optically down ~12% YoY but was up 25% adjusted for one mega deal.
With mega deals largely missing for the industry in the last two to three quarters, this situation could play out for Infosys too after a great FY21 on lumpy deals like Daimler and Vanguard.
Despite Q2 FY22 miss and a likely muted H2 FY22, TCS will deliver close to mid-teens growth in FY22, post which we think growth could slow to very low double-digit in FY22-FY24.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR