TCS Q1 Review - Result Inline; Commentary Stays Confident On Sustained Traction: Dolat Capital
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Dolat Capital Report
Tata Consultancy Services Ltd. reported revenue growth of 2.4% QoQ in constant currency terms (our estimate: 2.9%) led by broad-based growth across verticals except regional markets wherein revenues declined due to postponement of deal execution.
Operating profit margin declined by 133 basis points QoQ to 25.5% (our estimate:25.5%) on account of wage hikes and gradual normalisation in discretionary under selling, general and administrative.
Announced dividend of Rs 7 per share.
Signed strong deal total contract value wins worth $8.1 billion (up 17% YoY) taking trailing twelve months TCV to $32.7 billion implying 1.41 times revenue coverage.
The strong revenue coverage is also led by higher share of cloud based transformation deals that have slightly longer tenor.
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