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Sharekhan's research report on Tata Consultancy Services
Reported revenues at $7,363 million, up 1.1% q-o-q in constant currency (CC) terms, missing our estimates by 0.5%, EBIT margin expanded 98 bps q-o-q to 26%, beating our estimates of 25.3% aided by reduced sub-contractor costs, improved productivity and better utilization offset by headwinds from third-party costs and travel expenses. Record Deal win TCVs at $13.2 billion, up 63% q-o-q/32% y-o-y. Book to bill ratio stood at 1.8x (up from 1.1x in Q3FY24). TCS is witnessing green shoots and moderate growth in consumer business and pent-up demand in BFS, Management believes FY25 to be certainly better than FY24.
Outlook
We maintain a Buy with an unchanged PT of Rs. 4,750. At CMP, the stock trades at 27.4x/23.6x FY25/26E EPS.
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Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!