TCS Q4 Results Review - Soft Quarter; Recovery Beyond Q1: HDFC Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Tata Consultancy Services Ltd. delivered a soft quarter, impacted by weakness in North America geography (more than 1% impact on overall revenue estimated) on higher exposure in the banking, financial services and insurance vertical and the ensuing headwinds. Margins were flat sequentially but are expected to improve as growth revives (post Q1) and the cost of delivery normalises. Positive markers for the company include-relative improvement in continental Europe geography (15% of revenue) with strong bookings in the $50 million plus total contract value;continued momentum in UK geography (16% of revenue) posting 5% QoQ constant currency, which is likely to continue with increased thrust on vendor consolidation (scale leadership), cost optimisation and automation; global leadership in hyperscaler partnership (116,000 cloud certifications up 90% YoY), which will support recovery in growth and transformation deals over the medium term; andscope for cost optimisation (cost of delivery still 200 basis points higher than pre-Covid). Chief Executive Officer transition timelines moving earlier as well as pent-up elements from deal deferrals can provide a positive catalyst for H2 FY24E..Click on the attachment to read the full report:.TCS Q4 Results: Revenue Rises 1.6%, Profit Up 5% Amid Margin Miss.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TCS Q4 Results Review - Soft Quarter; Recovery Beyond Q1: HDFC Securities

CEO transition timelines moving earlier as well as pent-up elements from deal deferrals can provide a positive catalyst for H2.

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