Q4FY23 Preview: TCS: Revenues seen at Rs 599,982 million, PAT at Rs 118,639 million

11 Apr 2023 , 03:53 AM

Result date: 12^th April, 2023

Recommendation: Buy

Target price: Rs 3,620

 

Analysts at IIFL Capital Services expect revenue of Tata Consultancy Services (TCS) to grow by 1.3% cc QoQ (+3.0% QoQ), as ramp-up of previously won deals is partly offset by uncertain macro environment.

They forecast EBIT margins to expand 50 basis points QoQ, driven by productivity improvement and continued easing of supply side. Deal wins are likely to remain healthy for TCS. 

TCS could post Profit After Tax (PAT) growth of 9% on a sequential basis.

Important management insights to watch out for:

• Changes to organization structure post change in CEO
• Deal-win TCV and nature of deals
• Commentary on FY24 outlook amid macro concerns
• Potential impact on margins from easing supply side
• Potential share buyback announcement

 

	March 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	7,290	3.0%	8.9%
Revenue (Rs. mn)	599,982	3.0%	18.6%
EBIT (Rs. mn)	149,923	5.0%	18.7%
EBIT margin	25.0%	50 bps	–
Profit After Tax (Rs. mn)	118,639	9.4%	19.5%
EPS (Rs.)	32.4	9.4%	20.8%

Source: IIFL Research