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

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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.

Click on the attachment to read the full report:

ICICI Securities TCS Q4FY21 Results Review.pdf


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