TCS Q3 Results: An Overview
Tata Consultancy Services (TCS) has announced its Q3 results, and the company has posted inline results. The revenue growth has been broad-based, with all industries and geographies showing improvement. The net profit has also increased, driven by the growth in revenue and improvement in operating margins.
Yes Securities Remains Positive on TCS
Yes Securities has maintained its ‘Buy’ rating on TCS, citing the company’s disciplined execution, strong order book, and full-service offerings as key strengths to navigate the current demand environment. The brokerage firm expects TCS to continue its growth momentum, driven by the increasing demand for digital transformation and the company’s strong position in the market.
Key Highlights of TCS Q3 Results
- Revenue growth: 12.2% YoY, 3.5% QoQ
- Net profit: 12.5% YoY, 1.5% QoQ
- Operating margins: 25.1%, up 10 bps QoQ
- Order book: $11.6 billion, up 14.1% YoY
Analysis of TCS Q3 Results
The Q3 results of TCS have been inline with the expectations, and the company has shown a broad-based recovery in revenue growth. The operating margins have also been resilient, despite the wage and investment headwinds. The strong order book and full-service offerings of the company are expected to drive the growth momentum in the coming quarters.
Target Price and Potential Upside
Yes Securities has maintained its target price of Rs. 4,500 on TCS, implying a potential upside of 20% from the current levels. The brokerage firm expects TCS to continue its growth momentum, driven by the increasing demand for digital transformation and the company’s strong position in the market.
Investment Strategy for Indian Investors
Indian investors can consider buying TCS on dips, with a long-term perspective. The company has a strong track record of growth and has been a consistent performer in the IT sector. The increasing demand for digital transformation and the company’s strong position in the market are expected to drive the growth momentum in the coming quarters.
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