iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

TCS Results Review – A well-rounded quarter amidst macroeconomic concerns

10 Jan 2023 , 03:20 PM

Revenue growth of TCS in December quarter stood at 2.2%, quarter-on-quarter (Q-o-Q) in constant currency terms. It stood at 13.5% on year-on-year (Y-o-Y) basis.  Earnings before Interest and Taxes (EBIT) margin in the quarter stood at 24.5%. This was a 50-basis point increase over the EBIT margin in the previous quarter. 

New deal wins in the quarter stood at US $ 7.8 billion. In spite of the macroeconomic concerns, new deal wins for the company remained healthy in the quarter. Value of new deal wins in the quarter increased Y-o-Y by more than 9%.  This may indicate that in spite of the global economic slowdown, spending on technology by companies may decline by less than expectations. 

A marginal decline in workforce number was seen by TCS in this quarter. On an annualized basis, attrition rate of the company came down by 600 basis points in the quarter. The management asserted that demand is steady, except for in Europe.  Marginal decline in headcount is not a reflection of decline in demand for the business of the company, the management added. 

Margins are likely to improve for TCS in 2023. Results of the company allay some fears regarding the short-term prospects of the sector. Medium term prospects of the sector look sanguine. IIFL Capital Services is raising Target Price to EPS ratio for TCS to 24 times. An ADD recommendation is being given for the stock because of its good medium-term prospects. 

Related Tags

  • tcs
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.