TCS Q4 Review - Downgrade Cycle Ahead? ICICI Securities
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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.
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