TCS Q4FY22 Preview: Revenues seen at Rs503,256 million, PAT at Rs99,834 million

11 Apr 2022 , 08:22 AM

Result date: 11^th April, 2022
Recommendation: Add
Target price: 3,900

Country’s largest IT services company, Tata Consultancy Services (TCS) is all set to start the earnings season for the March 2022 quarter. Continued demand momentum amid accelerated adoption of digital technologies and migration to cloud-based solutions will fuel revenue growth in the quarter. Short-cycle deals are likely to be at the forefront of revenue growth.

TCS’ revenue is pegged at Rs 503,256 million, implying a sequential growth of 2.9% and a 15.1% growth over the year-ago quarter. Company’s EBIT margins though could witness stress arising from supply-side pressures and strong employee hiring.

Important management insights to watch out for:

• Details around nature and trajectory of deal wins
• Insights into any possible impact from the on-going geo political issues
• Update on supple-side challenges
• FY23 outlook on growth and margins

	March 2022 estimates	QoQ change	YoY change
Revenue (US$ mn)	6,687	2.5%	11.7%
Revenue (Rs. mn)	503,256	2.9%	15.1%
EBIT (Rs. mn)	125,133	2.3%	6.6%
EBIT margin	24.9%	(20) bps	(200) bps
Profit After Tax (Rs. mn)	99,834	2.2%	8.0%
EPS (Rs.)	27.0	2.2%	8.0%

Source: IIFL Research