TCS Q4 Results 2022 Available Today – Download EBIT Margin, Revenue Growth, Deal Pipeline and Details Here!!!

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TCS Q4 Results 2022 Available Today – Download EBIT Margin, Revenue Growth, Deal Pipeline and Details Here!!!
TCS Q4 Results 2022 Available Today – Download EBIT Margin, Revenue Growth, Deal Pipeline and Details Here!!!

TCS Q4 Results 2022 Available Today – Download EBIT Margin, Revenue Growth, Deal Pipeline, Growth in Key verticals and Management Commentary on Out Look Details Here. Tata Consultancy Services (TCS), India’s largest IT services business, will report its financial results for the March 2022 quarter on Monday, kicking off India Inc’s earnings season. Although the company does not disclose revenue growth guidance, investors will pay attention to management’s perspective. Here are some key parameters that investors should look for in the outcomes.

EBIT Margin

The company’s EBIT margins are expected to decline 20 bps quarter-on-quarter to 24.8 per cent due to continued increase in employee costs amid high attrition, ICICI Securities said in a report.

Revenue growth

TCS is expected to grow faster than Tier-1 IT businesses such as Coforge and LTI, according to analysts. “Factored USD revenue/EPS CAGR of 12% each over FY22-24E, supported by scale and breadth of services, including industry platforms, market-share gains from deal bookings in the core vertical (BFSI)/core geography (North America), superior execution and operational track record, and superior balance sheet,” according to HDFC Securities.

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Growth in key verticals

TCS is more focused on the banking, financial services, and insurance (BFSI) and retail verticals than its industry counterparts, therefore its growth in these areas will be an important factor to watch. BFSI generates the most revenue, accounting for around 31% of total revenue, while retail generates roughly 14% of total revenue.

“The performance would be broad-based,” according to YES Securities, “with better traction across BFSI, telecom, healthcare, manufacturing, and retail sectors driving revenue growth.”

Management commentary on outlook

YES Securities said it expects broadly stable margin with attrition almost peaking out. Management commentary on the outlook on growth environment would be key thing to watch out for.

Deal Pipeline

Deal pipeline/bookings are one of the main monitorables for TCS, according to HDFC Securities. Cemex, Western Power, and Fletcher are among the major agreements included.

“The performance in this quarter would be marginally hampered due to the lesser number of days in the quarter,” YES Securities added. For most IT firms, attrition has reached a nadir and is expected to level off and decline in the coming months. Most companies’ EBIT margins are likely to remain steady (+/-20bps) from quarter to quarter.”

In the December 2021 quarter, Tata Consultancy Services had posted a 12 per cent jump in its net profit to Rs 9,769 crore, compared with Rs 8,701 crore recorded during the corresponding period of the previous financial year. Its revenue from operations also rose 16 per cent to Rs 48,885 crore in the third quarter of the current fiscal. It was Rs 42,015 crore a year ago.

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