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.
ICICI Securities Report
Tata Consultancy Services Ltd. reported revenue growth of 1.1% constant currency/2.2% USD – in line with our estimate of 1.5% CC/2.3% USD for Q2 FY25.
Growth was led by regional markets/banking, financial services and insurance, up 10.5%/1.9% QoQ USD. Retail and hi-tech saw some revival QoQ while healthcare saw weakness from client-specific headwinds.
Ebit margin, at 24.1%, was down 60 basis points QoQ due to:
higher subcontracting and project transition cost;
hiring; and
investment in infrastructure, software license.
Total contract value, at $8.6 billion, came in within management's comfort range of $7–9 billion. Management commentary had a positive tone and the pipeline is robust. Broadly, the parameters exhibit mixed signals versus Q1 FY25's more broad-based growth.
We adjust FY25E/FY26E EPS lower by 1–2% and retain Add with a Sep'25E target price of Rs 4,840 at 30 times Q5-Q8 earnings per share.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.