Given its size, order book and exposure to long-duration orders and portfolio, TCS is well positioned to grow over the medium term.
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.
Motilal Oswal Report
Tata Consultancy Services Ltd. reported revenue of $7.5 billion in Q3 FY25, down 1.7% QoQ in USD terms versus our estimated decline of 0.3%. Growth was driven by India (up 8.2% QoQ/66.3% YoY) and Middle East, Africa (up 7.7% QoQ), while North America was down 1.5% QoQ. Ebit margins came in line with our estimate at 24.5% (up 40 basis points QoQ).
Profit after tax was up 4.1% QoQ/12.1% YoY at Rs 124 billion (below our estimate: of Rs 127 billion).
For nine months FY25, revenue/Ebit/PAT increased by 6.2%/7.3%/8.5% compared to 9MFY24. In Q4 FY25, we expect revenue/Ebit/PAT to grow by 7.2%/7.2%/9.5% YoY.
TCS reported a deal total contract value of $10.2 billion, up 18.6% QoQ and 25.9% YoY. The book-to-bill ratio was 1.4 times.
We reiterate our Buy rating on TCS with a target price of Rs 5,000, implying a 24% potential upside.
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.
