TCS Delivered Healthy Margin Expansion In Q3 Despite Wage Hikes, Says ICICI Direct
An employee walks past a signage for Tata Consultancy Services Ltd. (TCS) at the company’s Synergy Park campus in Hyderabad, India. (Photographer: Namas Bhojani/Bloomberg)

TCS Delivered Healthy Margin Expansion In Q3 Despite Wage Hikes, Says ICICI Direct


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ICICI Direct Report

Tata Consultancy Services Ltd. reported a healthy set of Q3 FY21 numbers that were above our estimates on all fronts. Growth happened across geographies and verticals.

The QoQ growth in revenues was led by healthy demand in core transformation services and conversion from earlier deals. U.S. dollar revenues grew 5.1% QoQ to $5,702 million, above our estimate of 3.6% QoQ growth and $5,619 million estimate.

Ebit margin expanded 42 basis points QoQ to 26.6%, above our estimates of 25.1%.

The company has declared an interim dividend of Rs 6 per share. The company aspires to register double digit revenue growth in FY22E.

Click on the attachment to read the full report:

ICICI Direct TCS Q3FY21 Result Update.pdf


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