TCS Q2 Review - Margin Expansion A Positive Surprise: ICICI Direct

BQ Blue'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 BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Tata Consultancy Service Ltd. reported Q2 FY22 results. U.S. dollar revenues grew 2.9% QoQ to $6,333 million, 4% QoQ constant currency growth.

Ebit margins improved 10 basis points QoQ to 25.6%. The company's deal pipeline continues to be healthy at $7.6 billion.

TCS is key beneficiary of multi-year growth (15-20%) in digital technologies.

Increase in outsourcing in Europe, vendor consolidation and deal pipeline leading to revenue compound annual growth rate of 15.9% over FY21-23E.

Industry leading margins to continue; expect margins to improve 190 basis points over FY21-23E.

Double-digit return ratios, strong cash generation and healthy payout.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

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.