TCS Q3 Results Review - Revenue Growth Remains Strong As Margins Improve: Centrum Broking

Centrum Broking Report

Tata Consultancy Services Ltd. reported better than expected revenues at Rs 582,290 million which was 2.1%/1.8% above our/consensus estimates respectively.

Ebitda margins were broadly inline at 26.7% which was up 20/down 20 basis points compared to our/consensus estimates. Deal pipeline was $7.8 billion and continued to operate comfortably in the guided $7-9 billion range, despite some softening from the last quarter.

Net hiring was down 2,197, marking the first decline in employee headcount since Q1 FY21, which TCS attributed to significant investments in hiring made during FY22 (where net hiring was 103,546) which is gradually normalizing.

TCS noted some near-term caution in U.S. markets, but remains optimistic on the medium term for the North American market. TCS also noted continued strength in the UK markets, while continental Europe continued to be weighed by geopolitical/macro issues.

Click on the attachment to read the full report:

More Research Reports On TCS Q3 FY23 Results Review

• Inline; Concerns Regarding Near Term Demand Environment: Yes Securities

• Mixed Results; Rising Near Term Uncertainty: Dolat Capital

• In A Sweet Spot To Maneuver Macros: IDBI Capital

• Good Growth, Deal Wins To Drive Performance: Motilal Oswal

• Growth Normalisation Ahead: HDFC Securities

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.