IGI Logo

Below are Quote on TCS Q1FY22 numbers by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

TCS reported a 2.7% qoq growth in revenues to USD 6.15bn which was below street estimates. In rupee terms revenue grew by 3.9% qoq to ₹45,411 crore. Gross profit for the quarter was up 1.7% qoq to ₹ 18,331 crore while gross margins contracted by 87bps qoq to 40.4%. EBIT for the quarter registered a de-growth of 1.2% qoq to ₹11,588 crore while EBIT margins contracted by 133bps qoq to 25.5%. Adjusted net profit for the quarter was down by 2.6% qoq to ₹9,008 crore. Margins for the quarter were impacted due to wage hikes and lower than expected top line growth. The Q1FY22 numbers were operationally below street estimates largely due to weakness in regional markets led by India due to Covid. However US and UK registered strong growth at 4.1% and 3.6% QoQ and bodes well for the rest of the sector. New deal wins also remained strong at USD 8bn. Overall the company posted a mixed set of numbers for the quarter and the markets will now look forward to the Infosys numbers which will be declared on the 14^th of July. 

Above views are of the author and not of the website kindly read disclaimer