3Q beats estimates despite demand constraints

Company

12 Jan 2024 | 5 Min Read

TCS reported 3QFY24 revenue of USD7.28b, beating estimates despite weak demand and seasonal weakness.

Deal wins in 3Q were USD8.1b, in line with expectations.

EBIT margin improved 70bp QoQ to 25.0%, exceeding estimates.

Attrition rate declined by 160bp QoQ to 13.3%.

TCS expects improvement in client sentiment and growth in BFSI sector in 4Q.

TP of INR4,250 implies 14% upside potential, reiterating BUY rating.