TCS Q4 Results Review - Superior Execution; Demand Uncertainty Still Persists: Axis Securities

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.In Q4 FY24, Tata Consultancy Services Ltd. reported revenue of Rs 61,237 crore, up only 1.5% on a QoQ basis (in rupee terms). The lacklustre growth was owing to weakness in discretionary spending. On a YoY basis, it posted revenue growth of 3.5%. The company reported operating profits of Rs 15,918 crore and operating margins of 26%, up 100 basis points QoQ. This was on account of better execution, strong volume growth, and reduced sub-con cost. Attrition levels dropped by 80 bps to 12.5%, but it continues to loom concerns over the company’s execution efficiency in the future. The management commentary on the verticals such as BFSI, Hi-tech media, and communication was cautious. Furthermore, it expects the company to report moderate growth in the near term due to lack of visibility. On a brighter note, deal-wins for the quarter continued strong and remained high. Moreover, deal wins were spread across verticals and geographies and stood at $13.2 billion (BFSI total contract value at $4.1 billion; consumer business TCV at $1.6 billion). TCS expects technology spending to remain resilient and expects the secular tailwinds to drive healthy growth over the medium to long term. .Outlook: From a long-term perspective, we believe TCS has built a resilient business model by securing multiple long-term contracts with the world’s leading brands. It has also established robust capabilities that will enable it to gain market share moving ahead. However, prevailing uncertainties in large economies continue to pose short-term headwinds to the company’s growth prospects. Nonetheless, we believe discretionary spending will gradually increase with newer technologies moving forward..Click on the attachment to read the full report:.TCS Q4 Results Review - Strong Execution; Discretionary Spending Remains Challenged: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

TCS Q4 Results Review - Superior Execution; Demand Uncertainty Still Persists: Axis Securities

BFSI and retail verticals reported sluggish growth, indicating a possible softening of demand.

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TCS Q4 Results Review - Superior Execution; Demand Uncertainty Still Persists: Axis Securities

BFSI and retail verticals reported sluggish growth, indicating a possible softening of demand.

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