Tata Consultancy Services Ltd. share price target

In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased 1%/5%/-1% YoY (v/s TCS deal win TCV of USD8.9b (+44% YoY, ex-Phoenix deal) despite the COVID-19 shock during 4QFY20 was impressive. The pandemic is expected to pose continued near-term challenges on demand, supply, pricing and working capital fronts. The COVID-19 pandemic is expected to pose continued near-term challenges on demand, supply, pricing and working capital fronts. In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased 1%/5%/-1% YoY (v/s our estimates of 3%/4%/-2% YoY). For FY20, revenue (USD) / EBIT (INR) / PAT grew BFSI saw sharp revenue decline (~4.8% QoQ, USD); we understand this is due to difficulty in securing approvals for work from home (WFM). Life Sciences and Healthcare (+3.3% QoQ, USD), Technology and Services (+0.9% QoQ, USD) and Communications (+0.2% QoQ, USD) remained outliers to the Despite an expected stretch on working capital cycle, the company increased its.

The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...

The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...

Muted Performance: TCS reported a muted Q3FY20 performance due to sluggish performance of BFSI and Retail verticals.

WBA is turning to managed services to transform its global IT function. WBA is set to launch a new managed services-based operating model for IT run and operational services, following a transitional period, TCS will provide managed...

TCS reported sluggish revenue growth of 1.3% QoQ and 6.8% YoY in constant currency terms for Q3FY20 at Rs. 39,854 crs. Client addition for TCS remained high during Q3FY20 which will help to generate sustainable growth over long term. TCV for Q3FY20 remained strong at $6bn.

Tata Consultancy Services (TCS) provides a comprehensive range of IT services globally. The company serves clients across diverse industries, including finance and banking, insurance, telecommunication,...

TCS's Q3FY20 results were in line with our expectation. Revenue grew by 1.3% QoQ in US$ vs. our forecast of 1% QoQ. Despite of muted revenue growth, TCS's EBIT margin saw a sharp improvement of 100bps QoQ to 25% (vs. our forecast of 24.6%). TCS continues to demonstrate strong EBIT margin management capabilities. EPS of 21.6, +0.9%/+0.2% was in-line with our forecast. TCS maintained the deal win momentum with TCV of ~US$6 bn which takes the 9MFY20 TCV to US$16 bn implying a ~22% YoY gowth....

Weakness in BFS, retail likely to continue in near term The company reported a below par performance on the revenue front mainly due to continued headwinds in banking financial services (tightening of spends in large banks in the US, UK) and retail (large retailers in US). The pressure is likely to persist in the near term in these areas. Further, the company discontinued giving breakup between digital and non-digital segments citing blurring lines between the two parts of businesses. On the other hand, momentum is expected to continue in insurance and life...