This topic contains 5 replies, has 1 voice, and was last updated by jyoti Sheth,Mumbai 1 month, 4 weeks ago.
October 15, 2016 at 4:42 pm #3479
TCS announced its 2QFY2017 results, which came in below expectations of most of the analysts, while the EBIT margins and net profit came in much higher than expected.
The company posted 0.3% sequential growth in USD revenues to US$4,374mn V/s US $4,441mn expected. In rupee terms, revenues came in at INR 29,284cr V/s INR 29,707cr, down by 0.1% QoQ. The constant currency growth (CC) came in at 1.0% QoQ, while volume growth of QoQ of 1.3%.
The key geographies like USA QoQ grew by 1.4% on CC terms, while Latin America posted a dip of 0.2% QoQ on CC terms. In Europe, the UK posted a dip of 0.1% QoQ on CC terms, while Continental Europe posted a 3.7% QoQ growth on CC terms. India posted a QoQ dip of 7.6%, while Asia Pacific posted a QoQ growth of 3.5% and MEA posted a QoQ growth of 2.2% (all on CC terms).
In terms of domain, the BSFI (40.4% of sales), posted a CC QoQ growth of 1.2%, Retail & CPG (13.4% of sales) posted a CC QoQ de-growth of 3.1%. Communication & Media (11.4% of sales) posted a CC QoQ growth of 2.0%, Manufacturing (10.7% of sales) posted a CC QoQ growth of 3.1%, while Healthcare posted a CC QoQ growth of 4.7%.
On operating front, the EBIT margins came in at 26.2% V/s 25.2% expected an expansion of 93bps. Consequently, PAT came in at INR 6,586crV/s INR 6,377cr, a rise of 4.3% QoQ. In terms of the client additions the US$50+mn client addition was one and US$ 20mn+ was six. The attrition rate was 11.9% in the IT services.
EPS increased by 4.3% QoQ to Rs33.4 .I have marginally tweaked EPS estimates and expect the price of Rs2,650 based on 18x Sep-18 EPS.
Short-term challenges aside, I like TCS for its best-in-class execution, early investments in digital and leadership in most business segments. TCS remains well poised to grow at or above industry growth in the medium-to-long term.( This is my study/ compilation and not a recommendation to anybody.)
November 25, 2016 at 3:57 pm #3835
@ Kabir, I read your post but forget to buy TCS when it was really at rock bottom price. Now today, the scrip has shown strong rise. I repent why I missed this Golden opportunity.
Still a strong buy I assume … at Rs. 2300
November 25, 2016 at 3:59 pm #3836
vishal Patel, Mumbai
@ Jyoti, Kabir has given target of Rs. 2600+ and still the scrip is available at Rs. 2300. I beleive that there will not be any issue by USA new president. TCS and such companies giving valuable services to US companies so no problem feared for this company. Still a good buy
November 25, 2016 at 4:04 pm #3837
Nilesh Shah, Baroda
I take decisions based on technical analysis and I have found that the scrip has bottomed out and is now on strong upward move. I believe that even at this price of Rs. 2300, the scrip can be accumulated from 3 months angle. I also suggest Infosys at current price.
November 25, 2016 at 4:06 pm #3838
Saloni Patel, Pune
Any possibility of Management dispute affecting this scrip movements ? I indicate Tata- Mistry spat.
November 25, 2016 at 5:48 pm #3839
I donot think dispute relatiing to mistry will have any impact on TCS market price. Tata is a Rocking brand and funds and retail investors have deep trust in Ratan tata and Mistry was very new to all of them. he has not done any thing worth mentioning except that he was placed at the top just by being son of Palonjee mistry.
So I donot think that it willhave affect TCS market movements.