Published on 12/01/2018 10:04:49 AM | Source: Angel Broking Pvt Ltd
We maintain our Reduce rating on Tata Consultancy Services Ltd - Angel Broking
Below Is the View On Tata Consultancy Services Limited 3QFY2018 Result By Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking Pvt Ltd)
“TCS posted a 1.0% sequential growth in USD revenues to US$4,787mn V/s US$4,801mn expected. In rupee terms, revenues came in at INR 30,904cr V/s INR 31,049cr, up 1.2% QoQ. On Constant Currency (CC) terms, the company posted a 1.3% QoQ growth with volume growth coming in at 1.6% QoQ growth (highest growth in since three years for the December quarter). In terms of the geography, USA was key driver, with North America & Latin America registering a QoQ CC growth of 1.5% and 5.0% respectively.
In Europe, it was Continental Europe registering a QoQ CC growth of 2.6%. In terms of the Industries, it was Retail & CPG, registering a QoQ CC growth of 6.4%, while Energy & Utilities posted a QoQ CC growth of 8.5%, Life Sciences & Healthcare (QoQ CC growth of 2.5%). On profitability front, EBIT margin showed an upside of ~12bp QoQ to 25.2%. Consequently, PAT came in at INR 6,531cr V/s INR 6,509cr expected, up of 1.1% QoQ. In terms of Client additions, in $50M+ it added 3; $20M+7, $10M+ 9, & in $5M+ 15. In services Digital (which posted a QoQ CC growth of 13.9%), the company signed the largest digital deal signed till date. In terms of attrition, it came in at 11.9%, we maintain our REDUCE rating on the stock, with a price target of INR 2,442.”
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