TCS reported 0.5% QoQ CC revenue growth, largely in line with the brokerage's estimate of 0.4% and consensus estimate of 0.6%, with international business growing 1.2% QoQ CC. Growth was broad-based, led by BFSI, manufacturing and technology and services, although the demand environment remained unchanged, with discretionary programs still under scrutiny and see delayed ramp ups.
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.
PL Capital Report
PL Capital maintains Buy rating for Tata Consultancy Services Ltd. post the company declares its Q2 results for the quarter ending September, and values the stocks at 14 times (earlier 15x) Sept. 28E earnings per share, but cuts target price to Rs 2,390 from Rs 2,580.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
TCS reported 0.5% QoQ CC revenue growth, largely in line with the brokerage's estimate of 0.4% and consensus estimate of 0.6%, with international business growing 1.2% QoQ CC.
Growth was broad-based, led by BFSI (+2.5% QoQ CC), manufacturing (+3.1%) and technology and services (+3.1%), although the demand environment remained unchanged, with discretionary programs still under scrutiny and see delayed ramp ups.
Consumer and ERU segments continued to decline in Q2, but management expects consumer to recover in Q3, supported by seasonality, while recovery in ERU is expected to be gradual.
TCS' total contract value remained steady at $9.6 billion, excluding the Porsche and Best Buy deals, while annualized AI revenue crossed $3.1 billion (~10% of revenue), highlighting strong traction in AI-led services.
Despite improving AI traction and a healthy deal pipeline, PL Captial expects modest improvement in H2 FY27 organic growth, given furloughs and continued weakness in traditional services. However, with MHP expected to start contributing from Q4 FY27E, the brokeage raises its FY27E/FY28E revenue growth estimate to 3.4%/5.0% from 2.9%/3.6% earlier.
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, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
