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IDBI Capital: TCS Logs A Stellar Q2 Performance 

IDBI Capital: TCS Logs A Stellar Q2 Performance

An employee walks past a signage for Tata Consultancy Services Ltd. at the company’s Synergy Park campus in Hyderabad. (Photographer: Namas Bhojani/Bloomberg) 
An employee walks past a signage for Tata Consultancy Services Ltd. at the company’s Synergy Park campus in Hyderabad. (Photographer: Namas Bhojani/Bloomberg) 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

IDBI Capital TCS Q2FY21 Result Review .pdf

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