Tata Consultancy Services Ltd. share price target

TCS posted a 3.2% sequential growth in USD revenues to US$5,215mn v/s US$5,051mn in 1QFY2019. In rupee terms, revenues came in at `36,854cr V/s `34,261cr, up 7.6% QoQ. In Constant Currency (CC) terms, the company posted a 3.7% QoQ growth. On profitability front, EBIT margin showed an upside of ~148bps QoQ to 26.5%. Consequently, PAT came ..

India's biggest software exporter Tata Consultancy Services Q2 profit jumps 23% YoY to Rs 7,901 crore, meets Street estimates Sequentially TCS registered an 8% rise in consolidated sales to Rs 36854 crore for the quarter...

TCS posted solid performance in Q2FY19 with strong dollar revenue growth of 3.2% QoQ (CC revenue growth of 3.7%). Revenue outperformance was driven by broad based growth across segments and service lines. Further robust demand for digital services coupled with continued traction in BFSI and retail verticals also aided growth. Digital business continued to perform well with revenue contribution increasing to 28% in Q2FY19 from 25% in Q1FY19. Notably, BFSI (31.2% of overall revenue) and retail (16.6%) verticals continue to gain momentum with revenue growth of 3.5% and 3.4% QoQ respectively. Additionally,...

Tata Consultancy Services Ltd Q2FY19 results Comment Revenue grew by 7.57% to Rs. 36854.0 Cr in Q2FY19 when compared to the previous quarter. Also, it grew by 20.67% when compared with Q2FY18.

Maintain BUY with TP of Rs 2,400, at 24x Sep-20E EPS supported by >60% RoIC and >4% FCF yield TCS strong performance (in-line) was digital-led and driven by momentum in core verticals, robust client metrics and deal signings. Revenue came at USD 5,215mn, 3.7/11.5% QoQ/YoY in CC terms (3.5% QoQ est) which was its fastest growth in three years (in YoY CC terms). EBIT margin was in-line at 26.5%, +148bps QoQ (26.3% est) impacted by INR depreciation. APAT stood at Rs 79.27bn, 7.7% QoQ supported by lower ETR

TCS reported an in-line operating performance in Q2FY19 with 3.7% QoQ CC (+11.5% YoY) revenue growth and 26.5% EBIT margins. YoY growth returned to double-digit trajectory after nine quarters and management is confident of rounding off the year with similar momentum. TCS remains our preferred pick amongst IT large-caps due to its (1) systematic and timely investment in digital capabilities, (2) growth visibility buoyed by recent large...

TCS won US$4.9bn TCV in 2QFY19 (similar to 1QFY19), implying book-to-bill ratio of 0.94x. BFSI accounted for the maximum value of US$1.5bn (US$1.6bn in 1QFY19). Like the previous quarter, TCS witnessed broad-based revenue growth in 2QFY19 with most verticals clocking healthy growth in CC terms, barring MFG, COMM and ENU. Improving growth momentum in BFSI and Retail verticals is the biggest positive, in our view. Looking ahead, we expect the IT major to clock double-digit growth in FY19E both in CC and USD terms. Digital hit 28.1% of total revenue (25%), clocking a robust 16.5% QoQ CC revenue growth. On margin front, TCS has hit a level within its...

TCS's Q2FY19 result was in-line with our forecast as regards reported US$ growth, EBIT and EPS. However, there was a slight miss as regards CC revenue growth which came at 3.7% QoQ (vs. our forecast of +4.5%) and EBIT margin improvement of +150bps to...

TCS reported healthy constant currency (CC) revenue growth of 3.7% QoQ (vs. our estimate of 3.9% QoQ) and rupee depreciation led margin expansion. In US$ terms, revenues grew 3.2% QoQ to $5,215 million mainly led by healthy demand from BFSI (31% of overall revenues) and retail (17% of overall revenues) vertical Rupee revenues grew 7.6% QoQ to | 36,854 crore, above our 6.3% growth expectations of | 36,403 crore estimate At 26.5%, EBIT margins expanded 150 bps QoQ (vs. our 26.5%...

of 26.5%, up 150bps qoq. Revenue growth was driven by strong growth in Digital up ~16% qoq; ~28% of sales. The improvement in margins was led by the INR's depreciation (120bps) and improvement in operational efficiencies (30bps). TCS assured double-digit growth (CC terms) in FY19 on the back of large deal wins (US$9.8bn so far in H1FY19) and a strong pipeline. However, there was no improvement in its commentary for the overall sector per se, which we believe, questions street's sector wide optimism of uptick in IT spending. TCS attributed its strong momentum to its differentiated capabilities (Machine first), and...