TCS Q3FY22: Healthy demand, robust client investments, weak rupee among others to drive financial books

12 Jan 2022 , 11:57 AM

Tata Consultancy Services (TCS) will be in focus on Wednesday ahead of its financial performance for the quarter ending December 2021 (Q3FY22). TCS stock was trading under selling bias as investors bet cautiously awaiting earnings.

TCS is expected to post a strong quarter this Q3 due to healthy demand, spending across verticals, robust client investments and core transformation.

However, TCS is expected to report a single-digit growth in the bottom-line front on a sequential basis, while EBIT margin will be driven by rupee depreciation.

The company’s board will consider plans and undertake 4th buyback of shares.

Key highlights for the quarter were – trends in client technology budgets 2022, deal pipeline, attrition rate and management commentary.

In Q2FY22, the company posted revenue of Rs46,867cr  rising by 16.8% yoy. Its constant-currency revenue growth was over 15.5%. Meanwhile, TCS posted a net income of Rs9,624cr during the quarter under review increasing 14.1% yoy. The net margin stood at 20.5%.

TCS had said that Q2 saw strong demand for growth and transformation services as customers took a longer-term view of their businesses, driven by improving vaccination levels and business outlook. There was broad-based growth across services led by cloud, enterprise application services, analytics and IoT.

At around 11.53 am, TCS was trading at Rs3890.30 per piece down by Rs25.50 or 0.7% on Sensex. The stock has touched an intraday high and low of Rs3930.15 per piece and Rs3872.45 per piece respectively.