IDBI Capital: TCS Logs A Stellar Q2 Performance
IDBI Capital: TCS Logs A Stellar Q2 Performance
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IDBI Capital Report
Tata Consultancy Services Ltd. reported a stellar performance in Q2 FY21 with a beat across the board versus our forecast.
Revenue grew by 4.8% in constant currency terms and Ebit margin saw a whopping improvement of 260 basis points QoQ to 26.2% (an eight quarter high).
Earning per share of Rs 22.5 grew by 20.3% QoQ and 4.9% YoY. In Q2, the company has secured deals with total contract value of $8.6 billion (including Phoenix Standard Life deal of $2.5 billion) versus $6.4 billion YoY.
The company believes that the uptick in tech spend is structural and the sector is witnessing the start of the first phase of a multi-year technology transformation cycle.
TCS has announced a share buyback (through tender offer route) of Rs 160 billion at Rs 3,000/share implying buyback of 1.42% of its outstanding shares.
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