TCS Q3 Results Review - Growth Normalisation Ahead: HDFC Securities

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. .HDFC Securities Institutional Equities.Tata Consultancy Services Ltd. delivered revenue beat and in-line operating performance in Q3 FY23. Revenue growth of 2.9% QoQ (1.2% estimate) was driven by a disproportionate rise in regional market and others segment (more than 40% of incremental sequential growth), based on growth in product and Asia Pacific business. Markers for growth deceleration (normalisation) for TCS include soft deal bookings, decline in headcount (also due to bench optimisation), and lower pipeline to bookings conversion in continental Europe (~15% of revenue). Plans of headcount addition for FY24E (125,000-150,000 gross including more than 40,000 freshers) and reversion to pre-Covid attrition also point to growth moderating in a linear framework. TCS growth will be driven by-increased vendor consolidation and cost optimisation deals (reflecting in bookings from UK geo such as BT deal) supported by TCS’ full-stack portfolio;growth in the qualified deal pipeline reflecting commitment towards long-term tech programs and on realisation improvement;bookings trajectory in the banking, financial services and insurance vertical (8% QoQ in BFSI total contract value versus 8% decline in TCV ex-BFSI); andmanufacturing vertical delivering better-than-anticipated (and non-extended) furlough in Q4..Click on the attachment to read the full report:.TCS Q3 Results: Revenue Rises 5% But Net Profit Misses Estimates.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 Q3 Results Review - Growth Normalisation Ahead: HDFC Securities

Tata Consultancy Services delivered revenue beat and in-line operating performance in Q3 FY23.

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