Tata Consultancy Services In line results confirm demand strength ::Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Tata Consultancy Services

In line results confirm demand strength

ACCUMULATE

CMP: Rs 1,192                                        Target Price: Rs 1,275

---

n     In line rev at US$ 2,244 mn (+4.6% QoQ) however solid QoQ flat margin show despite ~100 bps sequential onsite shift, strong net hiring at ~12k and ~200 bps drop in utilization

n     Continental Europe (+11.4% QoQ) , Manufacturing(+9% QoQ) post strong growth while BFSI(+3.3%QoQ) and Telecom  (-3.3% QoQ) dragged revenue growth

n     Decent results from TCS should soothe investor concerns after a near disaster at peer Infosys. Company lends confidence to demand visibility with a strong hiring outlook

n     Tweak FY12/13E earnings marginally to Rs 51.3/61.7 (V/s Rs 51.3/61.5 earlier). Retain ACCUMULATE with an unchanged price target of Rs 1,275