- Net Income: Tata Consultancy’s net income for 1Q 2024 is 120.4 billion rupees, an 8.8% year-over-year (y/y) increase, meeting the estimate of 119.59 billion rupees.
- Revenue: The company’s revenue totaled 626.1 billion rupees, up 5.4% y/y, slightly above the estimated 621.28 billion rupees.
- Financial Segment: Revenue from the financial segment reached 230.7 billion rupees, a 1.8% y/y rise, surpassing the 197.26 billion rupees estimate.
- Manufacturing Segment: Manufacturing segment revenue increased by 11% y/y to 62.7 billion rupees, exceeding the estimate of 57.71 billion rupees.
- Retail and Consumer Segment: Revenue in this segment was 99.9 billion rupees, a 1.1% growth y/y, close to the estimate of 99.18 billion rupees.
- Media and Tech Segment: This segment saw a notable 12% y/y revenue increase to 107.9 billion rupees.
- Lifesciences and Healthcare Segment: Revenue stood at 69.1 billion rupees, up 4.1% y/y, slightly above the estimate of 68.66 billion rupees.
- Total Costs: Total costs for the quarter were 473.4 billion rupees, a 3.4% increase y/y.
- Employee Benefits Expenses: Expenses in this category rose by 3.6% y/y to 364.2 billion rupees, significantly higher than the 239.38 billion rupees estimate.
- Depreciation and Amortization: These charges decreased by 1.9% y/y to 12.2 billion rupees, slightly below the estimate of 12.81 billion rupees.
- Dividend per Share: The dividend per share is 10 rupees, compared to 9 rupees y/y, but below the estimated 13.14 rupees.
- Analyst Ratings: The company received 29 buy ratings, 11 hold ratings, and 8 sell ratings.
Tata Consultancy Svcs on Smartkarma
Analyst coverage of Tata Consultancy Services (TCS) on Smartkarma indicates mixed sentiments. Sumeet Singh, in the “ECM Weekly” report of 25th March 2024, discussed various deals and upcoming IPOs with a bullish lean. Interestingly, the report mentioned India’s less favorable results for TCS placements. Meanwhile, in another report by Sumeet Singh, titled “TCS US$1.1bn Placement,” a bearish outlook was presented regarding Tata Sons’ plan to raise US$1.1bn through a stake sale in TCS. The report highlighted potential implications of the deal dynamics and its significance in the market.
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
Based on the Smartkarma Smart Scores, Tata Consultancy Services shows a promising long-term outlook. With a strong dividend score of 5, the company demonstrates a commitment to rewarding shareholders. Additionally, the high resilience score of 5 suggests that the company is well-equipped to weather market uncertainties and challenges, providing stability for investors. While the growth and momentum scores are moderate at 3 each, the overall positive outlook is further supported by a value score of 2, indicating potential for long-term value appreciation.
Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization catering to a wide range of industries including finance, banking, insurance, telecommunications, retail, manufacturing, pharmaceuticals, and utilities. With a strong focus on dividends and resilience, TCS positions itself as a reliable choice for investors looking for stability and steady returns in the ever-evolving IT services sector.
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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