TCS Q2 Results Review - Demand Drivers Remain Intact With A Few Visible Signs Of Slowdown: KRChoksey

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..KRChoksey Research Report.Tata Consultancy Services Ltd.'s Q2 FY23 performance is marginally lower than our estimate. Dollar revenue was up 1.4% QoQ to $6,877 million (our estimate: $6,920 million). Rupee revenue grew by 4.9% QoQ to Rs 5,53,090 million. Reported operating margin expanded by 90 bps to 24% on the back of lower employee expenses, operating leverage, and lower subcontractor expenses. Reported net profit of Rs 1,04,650 million was slightly lower than our estimate of Rs 1,05016 million with margin of 18.9%. In this quarter, TCS has registered a deal bookings of $8.1 billion, with a book-to-bill ratio of 1.2 times ($8.1 billion total contract value versus $8.2 billion in Q1), reflecting a stable demand environment. The total deal wins included $2.3 billion in banking, financial services and insurance and $1.6 billion in retail and consumer packaged good. Operating margin is expected to improve on the back of lowering the sub-con cost, improvement in retention (outlook of attrition decline ahead), pricing, and efficiency. TCS declared an interim dividend of Rs 8 per share..Click on the attachment to read the full report:.DISCLAIMERThis 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.

TCS Q2 Results Review - Demand Drivers Remain Intact With A Few Visible Signs Of Slowdown: KRChoksey

TCS' operating margin is likely to improve on the back of lower sub-con cost, softer attirition rate and higher efficiency.

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