TCS Q4 Review - Downgrade Cycle Ahead? ICICI Securities
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 Q4 Review - Downgrade Cycle Ahead? ICICI Securities

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.

ICICI Securities Report

Reported growth and margins were in-line with our/consensus estimates.

As we reach the fag end of the recovery leg, organic growth (2.6% QoQ, constant currency, our estimate) reverted more or less towards pre-Covid-19 baseline levels for March quarter.

This corroborates our argument that industry growth is unlikely to witness a meaningful acceleration (versus pre-Covid) over medium term as is expected by the street.

On expected lines, deal win total contract value ($9.2 billion) remained healthy and the management reiterated double-digit growth outlook for FY22.

Given the good pace of vaccination in core markets like U.S./UK, potential resumption of costs related to marketing events /onsite travel (in H2 FY22) is a key thing to watch out for.

Click on the attachment to read the full report:

ICICI Securities TCS Q4FY21 Results Review.pdf

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