Tata Consultancy Services Q4FY22 results, ICICI Securities

TCS reported its Q4FY22 results.

• US$ revenues grew 2.6% QoQ to $6,696 million, up 14.3% YoY in CC terms
• EBIT margins were flat at 25.0% for the quarter
• The company’s TCV was at US$11.3 billion (bn) at Q4FY22

Key triggers for future price performance

• TCS is key beneficiary of multi-year growth (15-20%) in digital technologies
• Increase in outsourcing in Europe, vendor consolidation and deal pipeline leading to revenue CAGR of 12.2% over FY22-24E
• We expect margins to be under pressure till FY24, resulting in margin contraction of 30 bps in FY22-24E
• Double-digit return ratios, strong cash generation and healthy payout

For the detailed report, click here – https://www.communicationstoday.co.in/tata-consultancy-services-long-tail-of-attrition-icici-securities/

CT Bureau