TCS Q2 Review - Result Miss; Costs Resumption, Attrition To Drag Margins Down: Dolat Capital
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.
Tata Consultancy Services Ltd. reported revenue growth of ~4% QoQ in constant currency terms (our estimate: 4.6%) owing to some softness and increased offshoring in Europe Region.
Operating profit margin improved by nine basis points QoQ to 25.6% (our estimate 25.9%) due to increased sub-con and supply side inflationary challenges.
Announced dividend per share of Rs. 7.
Total contract value wins were rather disappointing at $7.6 billion given the current robust demand environment.
The trailing twelve months TCV marginally declined to $31.7 billion with 1.3 times revenue coverage (from 1.4 times last quarter).
TCS highlighted that the miss was on account long-cycles and infrequencies of mega deals.
Click on the attachment to read the full report:
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.