Tata Consultancy Services Ltd. share price target

Q1FY18 revenue was in line (~USD 4.6 bn, up 2% QoQ in cc terms) led by 3.5% volume growth. Except BFSI, Retail and Regional, all other verticals (37% share) grew >3.5% QoQ. BFSI and Retail (45% share) grew ~2% QoQ. Digital (~19% share; ~USD 3.5 bn annualized revenue) grew 7.6% QoQ. EBIT margin (INR ..

Tata Consultancy Services Ltd Q1FY18 results comment Revenue decreased by 0.2% to Rs. 29584.0 Cr in Q1FY18 when compared to the previous quarter

For 1QFY2018, TCS posted below expectation results on the EBIT and net profit fronts. The company posted 3.1% sequential growth in USD revenues to US$4,591mn v/s. US$4,585mn expected, mostly volume lead (3.5% qoq growth). On Constant Currency terms, the company posted a 2.0% qoq growth. On profitability, the EBIT margins came in at 23.4% ..

Tata Consultancy Services (TCS) reported results for the quarter ended June 30 which was largely below consensus estimates. Sequentially TCS registered marginal fall in sales at Rs 29584 crore against Rs 29642 crore for the quarter ended June 2017. OPM fell 240 basis points from 27.4% to 25.1% which saw OP fall 9% to Rs 7413 crore. OPM declined around 240 bps qoq, due to wage revision (which impacted it by around 150 bps) and adverse currency movements (INR appreciation against USD). Other income fell 4% to Rs 959 crore and interest cost grew from Rs 8 crore to Rs 27 crore. After providing for depreciation (down 1% to Rs 499 crore), PBT fell 9% to Rs 7846 crore. Provision...

We slightly lower earnings estimate (-1.8/-1.5% for FY18/19E) on margin moderation (-40bps) and factored revenue growth of 8.3/8.6% and EBIT% at 24.9/25% for FY18/19E. With revenue/EPS CAGR at 8.5/5% over FY17-19E, maintain NEUTRAL with TP of Rs 2,500, 17x FY19E. TCS volume-led (3.5% QoQ) revenue growth was in-line at 2% CC QoQ, even as core geography (NorthAm) and core verticals continued to underperform the other segments. Growth in 1Q was impacted by completion of short-duration projects and inadequate refill as represented by decline in regional-markets vertical (17.6% of revenue and -3.6% CC decline). EBIT margin declined 230bps to 23.4%, consequent to wage hike (-150bps impact) and INR appreciation (-80bps impact).

IndusInd maintained its healthy operational performance with credit up 24% YoY to | 116407 crore, deposit traction at 31% YoY (led by savings balances), CASA ratio improving 90 bps QoQ to 37.8%, strong margin of 4% being maintained in last four to five quarters PAT increased 26.5% YoY to | 837 crore led by NII increase of 30.8% YoY to | 1774 crore and healthy other income growth of 20% YoY to | 1167 crore (core fee income rose by 25% YoY) Asset quality saw some pressure but was at acceptable levels. GNPA...

Revenue in Line, But Margins at 9-Year Low Tata Consultancy Services has delivered largely an in-line performance in 1QFY18 with its USD revenue growing by 3.1% QoQ (+2% QoQ in CC terms). While volume grew by 3.5% QoQ, CC pricing declined by 1.5% QoQ. EBIT margin declined steeply by 236bps QoQ, which was well below our estimate by 74bps, which led net profit to decline by 10% QoQ to Rs59.45bn (7.8% below our estimate). From vertical perspective, the key BFSI vertical grew in-line with company average by 3.1% QoQ, while Communication & Media grew by 4.6%, Manufacturing 4.5%, Technology & Services 4.4%, Life Sciences & Healthcare 6.1%, Travel & Hospitality 6.2% and...

As regards verticals, all except its newly formed Regional markets & other grew at of higher than the company growth in CC. TCS secured 11 large deals with higher share in BFSI (4 deals). The no. of US$100mn+ clients increased by 1 QoQ to 36. EBIT margin misses again; TCS maintain CC range of 26%-28% for the long term Q1FY18 EBIT margin declined by 236bps QoQ (vs. our forecast of 149bps) to 23.4% impacted by salary increase (-150bps) and INR appreciation (-80 bps). EPS of Rs30.4 was -9.4%/-5.2% QoQ/YoY and ~2% lower than our forecast. Maintain HOLD and TP of Rs2,440 based on 16x FY19E...

For 4QFY2017, TCS posted revenue of US$4,452mn v/s US$4,470mn expected, with 1.5% qoq growth mostly volume led, which was 1.7% qoq. Revenue in Constant Currency (CC) terms came in at 1.0% qoq. In Rupee terms, revenues de-grew by 0.3% qoq to Rs29,642cr v/s Rs29,996cr expected, led by Rupee appreciation. On the operating front, EBIT came in..

Revenue decreased by 0.31% to Rs. 29642.0 Cr in Q4FY17 when compared to the previous quarter.