Tata Consultancy Services Ltd's Q3FY18 consolidated net profit rises 1.32% qoq to Rs6,545cr; in-line with estimates

India Infoline Research Team | January 12, 2018 01:08 IST

The company’s consolidated revenue stood at Rs30,904cr, up 1.19% qoq and 3.93% yoy.

Tata Consultancy Services Ltd Q3FY18

Consolidated Results Q3FY18: (Rs. in crore)

Q3FY18 QoQ (%)
Revenue 30,904 1.2
EBITDA 8,288 1.5
EBITDA Margin (%) 26.8 9
Net Profit (adjusted) 6,545 1.3
***EBITDA margin change is bps
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Reco. Price

2,656

Last updated on

29-Dec-2017

TCS1
TCS reported in-line numbers for Q3FY18 on all fronts. Constant currency (CC) revenue grew by 1.3% qoq and US revenue came in at USD4,787mn. INR revenue grew by 1.2% qoq to Rs30,904cr, which is in-line with consensus estimate of Rs31,045cr. EBITDA stood at Rs8,288cr, up 1.5% qoq against consensus estimate of Rs8,365cr, EBITDA margin inched up by 9bp qoq to 26.8%. PAT increased by 1.3% qoq to Rs6,545cr.

• Retail & CPG showed strong turnaround with 6.4% qoq CC growth, driven by digital offerings. Company expects the improvement in performance to continue.
• BFSI revenue was down 1.5% in CC terms. Weakness in the vertical remains and management is cautiously optimistic about the improvement over the next year.
• Retail Banking in US is still in wait and watch mode and growth in Europe was driven by banking.
• Smaller verticals like Energy & Utilities grew at 8.5% qoq in CC terms.
• Geographically, growth was led by Latin America (5% qoq), Continental Europe (2.6% qoq) and North America (1.5% qoq).
• Large deal wins with customers such as Nielsen (USD 2.25bn), Marks & Spencer and Rolls Royce have digital as a key component and will support growth in 1HCY18.
• Digital revenues grew at a robust pace of 13.3% and has now crossed the USD1bn mark, as TCS continues to focus cloud, automation and platform offerings.
• Management maintained 26-28% margins outloook for the full year



Technical View:

Tata Consultancy Services Ltd ended at Rs. 2,788.40, down by 18.7 points or 0.67% from its previous closing of Rs. 2,807.10 on the BSE.
The scrip opened at Rs. 2,807.20 and touched a high and low of Rs. 2,820 and Rs. 2,781.90 respectively. A total of 13,30,839(NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.


***Note: This is a NSE Chart

 

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