TCS’ Q3 Beat Led By Faster-Than-Expected Demand Uptick: Motilal Oswal 
Signage for Tata Consultancy Services Ltd. (TCS) is displayed atop of a building in the Synergy Park campus in Hyderabad, India. (Photographer Namas Bhojani/Bloomberg)

TCS’ Q3 Beat Led By Faster-Than-Expected Demand Uptick: Motilal Oswal 

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.

Motilal Oswal Report

Tata Consultancy Services Ltd. reported revenue growth of 4.1% QoQ constant currency in Q3 (versus estimate 2.3% QoQ CC).

This is the best QoQ growth posted by the company since FY11 in a seasonally weak Q3 - it was led by broad-based delivery across sectors and regions.

Moreover, the company improved its Ebit margin to 26.6% (up 40 basis points QoQ; up 100 basis points versus our estimate) despite absorbing the full impact of a wage hike (160 bps impact).

Deal wins (ex-Postbank at $0.5 billion) were $6.8 billion, down QoQ on tough comps, but were up 13% from Q3 FY20.

Click on the attachment to read the full report

Motilal Oswal TCS Q3 Result Review.pdf

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