About the Company:
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. It offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions.
QoQ & YoY Performance:
India’s one of the leading IT Company has declared the results for its last quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company stood at Rs. 39,946 crores, went marginal up by 0.23% in March quarter 2020. Total expenditure (excluding interest and depreciation expenses) is Rs. 28,719 crores was marginally down by 0.14%. EBITDA numbers rose by 29.95%.
- YoY Performance: The Company has reported jumped by 5.09% in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company increased to 2.91%. EBITDA numbers climbed to 5.93%.
- Profitability of the company: The net profit of the company marginally slipped to 0.61% to Rs 8,093 crore in the quarter ended March 2020 as against Rs 8,143 crore during the previous quarter.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock was closed at Rs. 1,715.60 per share, down by 1.09%. The company has posted disappointing quarterly numbers compared to yearly numbers. However, the company posted Dollar revenue for the quarter stood at $5,444 million, down 2.5 % QoQ. Constant currency revenue growth at 3 % was much lower compared to 6.8 % in December quarter and 12.7 % in Q4 FY19. Document filing with the exchange, Gopinathan said, “We expect a return to normalcy in Q3 FY21. He added further, the impact of Covid-19 on TCS will be similar to the global financial crisis of 2008.” Hence, we recommend it to ‘HOLD’.