- Tata Consultancy’s 4Q net income is 124.3 billion rupees, representing an increase of 9.1% compared to the same period last year. This surpasses the estimated net income of 120.34 billion rupees.
- During the said period, the company generated revenue of 612.4 billion rupees, a 3.5% increment from the previous year. However, it fell slightly short of the estimated revenue of 614.51 billion rupees.
- Total costs for the quarter summed up to 455.45 billion rupees, a slight increase of 1.3% from last year.
- Employee benefits expenses saw a significant rise of 4.3% y/y, costing 351.38 billion rupees, far above the estimated 204.97 billion rupees.
- There was a decrease in depreciation and amortization by 3.4%, with figures standing at 12.46 billion rupees.
- The dividend per share increased from 24 rupees to 28 rupees year on year, but this was lesser than the estimated 38.92 rupees.
- Investment recommendations currently stand at 26 buys, 10 holds, and 10 sells.
Tata Consultancy Svcs on Smartkarma
Analysts on Smartkarma are closely following Tata Consultancy Services (TCS). Recently, Aequitas Research provided a weekly update on various deals, including the not-so-pleasant results of TCS in the placements market. On a more negative note, Sumeet Singh highlighted a bearish sentiment regarding Tata Sons’ plan to raise around US$1.1bn by selling a stake in TCS, potentially impacting other players in the market. However, Janaghan Jeyakumar, CFA, took a bullish stance on TCS’s US$2bn Buyback, discussing proration expectations and the implications for shareholders as the Tender Offer Period opens from 1st to 7th December 2023.
Additionally, Jeyakumar shared insights on TCS’s previous mega buyback of US$2bn, providing details on the record date and key events of the Buyback. This positive sentiment emphasizes the significant buyback program launched by the Indian IT services giant, showcasing potential benefits for investors. Both bullish and bearish views from these independent analysts contribute to a comprehensive assessment of TCS’s recent financial moves and market performance.
A look at Tata Consultancy Svcs Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Tata Consultancy Services appears promising based on the Smartkarma Smart Scores. With a strong focus on dividends and resilience, the company seems well-positioned to weather market uncertainties. Furthermore, Tata Consultancy Services demonstrates solid performance in terms of providing value to investors, which is crucial for long-term sustainability. Although there is room for growth and improvement in momentum, the overall outlook remains positive.
Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization serving clients across various industries such as finance, banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, and utilities. With a top score in dividends and resilience, Tata Consultancy Services showcases stability and commitment to rewarding investors, while also indicating potential for further growth and momentum in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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