TCS - Seasonal growth pangs, but nothing unexpected - Kotak

TCS, in its quarterly analyst briefing, highlighted that in 3QFY14 – (1) seasonal weakness will impact revenue growth in key markets; c/c sequential revenue growth could moderate to <3%, (2) EBIT margin will be stable on c/c basis at 2QFY14 levels of ~30% and (3) net income will receive a boost from forex gains of Rs. 1-5.2 bn versus losses of Rs. 3.8 bn in the last quarter. TCS remains confident of a solid demand environment.

We believe TCS can sustain the gap in revenue growth and margins versus the industry. Retain ADD.

Source : Equity Bulls

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