Tata Consultancy Services (TCS.NS) – Initiatives to boost margins by 2HFY4

Tata Consultancy Services (TCS.NS) (Q4FY23)

Introduction

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. It operates through Banking, Financial Services and Insurance; Manufacturing; Retail and Consumer Business; Communication, Media and Technology; Life Sciences and Healthcare; and Others segments.

The company provides TCS ADD, a suite of technology platforms for clinical research and drug development; TCS BaNCS, a financial solution platform; TCS BFSI Platforms, a cloud-native, as-a-service that helps FIs and insurance firms; TCS CHROMA, a cloud-based talent management solution; customer intelligence and insight solutions; TCS ERP on Cloud, a hosted ERP applications and services platform; TCS HOBS, a connected devices management platform; and ignio, an autonomous enterprise software.

It also offers TCS Intelligent Urban Exchange, smart cities and enterprises solution; TCS OmniStore, a commerce platform; TCS OPTUMERA, a retail-connected strategic intelligence platform; TCS TAP, a procurement offering; TCS MasterCraft, a platform of intelligent automation products; Quartz- the Smart Ledgers, a blockchain solution; Jile, an enterprise agile planning and delivery tool; TCS iON, an IT-as-a-Service model that provides business solutions; and TCS TwinX, an enterprise digital twin platform.

In addition, the company provides cloud, cognitive business, consulting, cybersecurity, data and analytics, enterprise solutions, Internet of Things and digital engineering, TCS interactive, and sustainability services. It serves capital markets; communications, media, and information services; public services; energy, resource, and utility industries; consumer goods and distribution industries; and banking, education, healthcare, high tech, insurance, life science, manufacturing, retail, travel, and logistics industries.

Highlights

The company reported revenue of ₹591.62bn for the quarter, an increase of 17% Y/Y and 10.7% in constant currency. Order book TCV at $10bn; North America TCV at $5bn; BFSI TCV at $3bn, Retail TCV at $1.3bn. The operating margin came at 24.5%, a decline of 50bps Y/Y. Net income margin in Q4 was 9.3%.

Stock Report

Tata Consultancy Services’s stock price declined by -3.65% in the past 1- year. The stock price showed a sideways trend in the past 3-months period and gave -3% returns. The stock has a 52-week high of ₹ 3,575 and its 52-week low is ₹ 2,926.10.

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Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 36

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