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TCS Q4FY18E Result Expectation@HighLight Investment

Consensus expectations for Q4FY18E:
  • Revenue – Rs31,671cr, up by 2.5% qoq on better performance in Retail & CPG vertical
  • EBITDA – Rs8,628cr, up by 4.1% qoq
  • EBITDA Margin – 27.2%, an expansion of 43bps qoq aided by cross currency benefit
  • PAT – Rs6,818cr, up by 4.4% yoy
 
Q3FY18 performance highlights:

  • Revenue –  Rs30,904cr, up by 1.2% qoq, due to ~6.4% qoq cc growth in Retail & CPG
  • EBITDA – Rs8,288cr
  • EBITDA Margin – 26.8%
  • PAT – Rs6,545cr

Remarks:

  • Key monitorable would be the quantum of growth in Retail & CPG vertical, which has been a strong performer, unlike for peers, where Retail & CPG has been subdued.
  • BFSI commentary – the expectations have been split among participants and TCS has sounded more cautious.
  • Comments on client budgets and quantum of digital deal sizes.




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