{"id":68,"date":"2019-08-05T11:43:49","date_gmt":"2019-08-05T11:43:49","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=68"},"modified":"2019-08-05T11:43:50","modified_gmt":"2019-08-05T11:43:50","slug":"tata-consultancy-services-limited-softer-1q-company-still-eyeing-for-double-digit-sales-growth-in-fy20","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/08\/05\/tata-consultancy-services-limited-softer-1q-company-still-eyeing-for-double-digit-sales-growth-in-fy20\/","title":{"rendered":"Tata Consultancy Services Limited: Softer 1Q, Company still eyeing for double-digit sales growth in FY20"},"content":{"rendered":"\n

Dated: 10th July 2019<\/em><\/p>\n\n\n\n

Tata Consultancy Services Limited: Softer 1Q, Company still eyeing for double-digit sales growth in FY20<\/p>\n\n\n\n

1QFY20 Results
\u2022 TCS revenues in Rs terms reported 9% YoY growth to Rs 3,81,720 mn and to Rs 5,484 mn in $ terms. BFSI grew 11% YoY and Digital revenue reported strong growth of 44% YoY.
\u2022 Reported EBIT grew 7% YoY to Rs 92,200 mn. EBIT margins declined by 80 bps YoY to 24.2% due to higher depreciation and other expenses.\u00a0
\u2022 Reported PAT grew 11% YoY to Rs 81,530 mn.<\/p>\n\n\n\n

Management Commentary
\u2022 TCS remains confident about medium-to-long term demand.
\u2022 Double-digit revenue growth in FY20 will depend on how 2Q pans out.\u00a0
\u2022 From now on, the focus will remain on maintaining margins. That will remain priority rather than margin expansion.
\u2022 Volatility in currency shall remain a factor to keep track of.\u00a0
\u2022 Sub-contracting costs have been on an upward trajectory for some time. This is a reflection of TCS\u2019 decision to participate aggressively and capturing Digital demand, despite the supply situation.
\u2022 Issued joining letters to 30k+ in 1Q. 40% have on-boarded in 1Q and the remainder in 2Q.<\/p>\n\n\n\n

Consensus Estimate (Source:\u00a0www.marketscreener.com<\/a>)\u00a0
\u2022 The stock price is Rs 2,105\/- as of close price of 10th July 2019 and trades at 23x \/ 21x the consensus EPS for FY 20E \/ 21E EPS of Rs 90.1 \/ 101.0 respectively.\u00a0
\u2022 Consensus target price is Rs 2,165\/- valued at 21x FY21E EPS of Rs 101.0.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Dated: 10th July 2019 Tata Consultancy Services Limited: Softer 1Q, Company still eyeing for double-digit sales growth in FY20 1QFY20 Results\u2022 TCS revenues in Rs terms reported 9% YoY growth to Rs 3,81,720 mn and to Rs 5,484 mn in $ terms. BFSI grew 11% YoY and Digital revenue reported strong growth of 44% YoY.\u2022 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/68"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=68"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/68\/revisions"}],"predecessor-version":[{"id":69,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/68\/revisions\/69"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=68"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=68"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=68"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}