TCS Stock Price: Tata Consultancy Services (TCS) There is no estimated analyst in its quarterly income which ends 30 June 2022 (Q1FY23) period. This reported an increase of 5.21 percent year-to-year (yoy) in the consolidated net profit at RS 9,478 Crore in the June quarter compared to RS 9,008 Crore in the same quarter last year. Consolidated income for the quarter grew 16.2 percent yoy to RS 52,758 Crore compared to RS 45,411 Crore in the quarter of last year, the company said in BSE archiving. Revenue growth of constant currency reaches 15.5 percent yoy. There are no details about the growth of dollar revenue in the income report.

EBIT margin reached 23.1 percent in the June quarter compared to 25 percent in the March quarter and 25.5 percent in the June quarter last year.

In the years-to-year, TCS managed to record two-digit growth throughout the vertical business. In sequence, the front of the company’s lower lines are lower. In particular, this quarter is challenging from the perspective of cost management, because the operation margin in Q1 is affected due to salary increases and other costs.

Rajesh Gopinathan, Chief Executive and Director of Implementing, in his comments after getting him, said that until now the IT department has not seen a trace of the recession on the request side but remains vigilant.

TCS Q1 – Spend Income and Margin

Aditi Patil-Recolic Rekolik at Prabhudas Lilladher on TCS said, “Miss for income and margin.” According to Patil, the company’s revenue grew by 1.3 percent qoq in the term dollar (ple: 2 percent, cons: 1.5 percent) and 3.5 percent qoq in the term cc (ple: 4 percent, cons: 3.6 percent) . In the dollar, growth is led by retail and CPG (+4.5 percent qoq), communication & media (+2.9 percent qoq), technology services (+2.4 percent qoq), lifesciences and healthcare (+2.3 percent Qoq). BFSI grew 1.9 percent qoq. Growth is muted in manufacturing (0.2 percent qoq). Furthermore, EBIT margin came at 23.1 per intersection (0.2 percent). Sen, decreased 190bps qoq (ple: 24 percent, cons: 23.5 percent).

MITUL SHAH- Head of Research Partners in Reliance Securities said, “TCS reported calm performance at 1QFY23 with EBIT margin that entered 23.1 percent, 60bps under our estimate of 23.7 percent” added, Ebit de-gew by 4 Percent of QoQ (up 5 percent yoy) to RS121.8bn while the EBIT margin was established at 23.1 percent (down 186bps Qoq /down 242bps yoy), 60bps under our estimate of 23.7 percent (consensus 23.5 percent). “

What should investors do now?

TCS shares have fallen by about 13 percent so far this year, amid a broader market correction and concern about global recession that can direct its expenses.

Through the first quarter in the topline and margin will encourage the estimated consensus lower by 3-4 percent. While management comments refer to a strong request so far, we believe that macro uncertainty will be overhang in the multiple of assessments, “said Morgan Stanley, who has the same weight ranking at TCS with a target price of 3,900 RS.

Although TCS reports profits and margins that are lower than estimates, Motilal Oswal sees the reverse potential in stock. Domestic brokers have maintained purchases on shares with a target price of 3,730 RS, the potential to increase 14 percent from the current level.

Motilal Oswal said given the size of TCS, order books, and exposure to long duration, and portfolios, were well positioned to withstand the weakened macro environment and rise in anticipated industrial growth.

TCS consistently maintains its market leadership position and shows the best execution in its class. This allows companies to maintain leading industrial margins and show superior return ratios, “said the broker.