Target: ₹4,432
CMP: ₹4,117.50
Tata Consultancy Services Limited (TCS) recorded revenue of ₹64,259 Crore, a growth of 7.6 per cent y-o-y The company recorded constant currency revenue growth of 5.5 per cent in Q2 FY25.
The EBIDTA and PAT for the current quarter was ₹16,731 crore and ₹11,955 crore respectively as compared ₹15,746 crore and ₹11,380 crore in the same quarter previous year an increase of 6.2% and 5.0% YoY basis, respectively. EBIDTAM and PATM in current
quarter are 26.0% and 18.6% slightly down from 26.3% and 19.3% in same quarter last year.
All the Growth Markets march above company average growth wherein major contribution was from India (+95.2%) which doubled to 8.9 per cent from 4.9 per cent in same quarter last year, Middle East & Africa (+7.9%), Asia Pacific (+7.5%), Latin America (+6.8%). In the Americas, North
America saw a decline of 2.1%, while Latin America grew by 6.8% in Q2 FY25, based on year-over-year constant currency growth.
The company reported muted Q2 numbers except slight momentum in BFSI segment and steady deal intake. Though management is optimistic and see recovery in Q4 led by gradual easing of inflation and interest rates, and a good holiday season. Therefore we recommend Hold rating on the stock with an unchanged target price of ₹4,432 per share.