Views on Tata Consultancy Services Limited 4QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking):

TCS (CMP: INR 2,321 / TP: INR 2,700 / Upside: 16.3%

"TCS announced its 4QFY2017 results today. The company posted revenue of US$4,452mn V/s US$4,470mn expected with 1.5% QoQ growth mostly volume led, which was 1.7% QoQ. Constant Currency (CC) came in at 1.0% QoQ. In rupee terms, revenues are expected to de-grow by 0.3% QoQ to INR 29,642cr V/s INR 29,996cr expectations, lead by rupee appreciation. In terms, of verticals, the company posted a CC QoQ growth in the respective segments as BFSI ( -0.4% QoQ), Retail & CPG( -3.0% QoQ), Communication & media ( 7.4% QoQ), Manufacturing ( 1.7% QoQ), Life sciences & Healthcare ( 3.1% QoQ), Hi-Tech( 5.2% QoQ), Energy Utilities( 1.4% QoQ), Travel & Hospitality ( 3.6% QoQ). In terms of geography the company posted a CC QoQ growth of North America (-1.8 QoQ), Latin America( -7.3 QoQ), UK ( 4.1% QoQ), Continental Europe( 7.1 QoQ), India( 9.3% QoQ), Asia pacific( 1.9% QoQ), MEA( 2.1% QoQ). In terms of client addition, clients $100M+ up by 1, $50M+ up by 4, $20M+ up by 4 & $10M+ up by 10. Overall, attrition rate came in at 11.5%. On the operating front, EBIT came in at 25.7% V/s 26.0% expected, a 31bps QoQ dip. PAT came in at INR 6,608cr V/s INR 6,855cr expected, down 2.5% QoQ sequentially. We maintain our BUY rating with a target price of INR 2,700."

Shares of TATA CONSULTANCY SERVICES LTD. was last trading in BSE at Rs.2308.65 as compared to the previous close of Rs. 2320.85. The total number of shares traded during the day was 77726 in over 4349 trades.

The stock hit an intraday high of Rs. 2338.95 and intraday low of 2302.5. The net turnover during the day was Rs. 180389752.

Source : Equity Bulls

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