TCS - Q1FY23 Result update - Prabhudas Lilladher

Ms. Aditi Patil - Research Associate at Prabhudas Lilladher.

TCS Q1FY23 Results First Cut

Miss on both revenue and margins

- Miss in revenue: Revenue grew by 1.3% QoQ in USD (PLe: 2%, Cons: 1.5%) and 3.5% QoQ in CC terms (Ple: 4%, Cons: 3.6%)

- Growth was led by Retail and CPG (+4.5% QoQ USD), Communications & Media (+2.9% QoQ USD), Tech Services (+2.4% QoQ USD), Lifesciences and Healthcare (+2.3% QoQ USD). BFSI grew 1.9% QoQ USD. Growth was muted in Manufacturing (0.2% QoQ USD)

- Growth was led by North America (4.5% QoQ USD). The UK decreased by -3.3% QoQ and Continental Europe decreased by -0.7% QoQ USD. India decreased by -4.7% QoQ USD.

- Miss in margins: EBIT margin came at 23.1%, decline of 190bps QoQ (Ple: 24%, Cons: 23.5%).

- Net headcount addition of 14,136 employees, +2% QoQ, +19% YoY

- LTM IT Services attrition increased by 230bps QoQ to 19.7%.

- Softness in deal TCV: Deal TCV at 8.2$ mn, -27% QoQ and 1% YoY.

Shares of Tata Consultancy Services Limited was last trading in BSE at Rs. 3264.85 as compared to the previous close of Rs. 3286.95. The total number of shares traded during the day was 76501 in over 7093 trades.

The stock hit an intraday high of Rs. 3300.25 and intraday low of 3250.05. The net turnover during the day was Rs. 251203829.00.

Source : Equity Bulls

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TataConsultancyServices INE467B01029 TCS Q1FY23 Result FirstCut PrabhudasLilladher