Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company with its headquarters in Mumbai. It is a part of the Tata Group and operates in 150 locations across 46 countries. In July 2022, it was reported that TCS had over 600,000 employees worldwide.
Tata Consultancy Services is the flagship company and a part of Tata group. It is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions.
TCS is the second largest Indian company by market capitalisation and is among the most valuable IT service brands worldwide. In 2015, TCS was ranked 64th overall in the Forbes “World’s Most Innovative Companies” ranking, making it one of the highest-ranked IT services companies and a top Indian company. In September 2021, TCS recorded a market capitalisation of US$200 billion, making it the first Indian IT tech company to achieve this milestone.
Quarterly Growth Analysis
TCS Consolidated Net Profit has risen by 14.8% to ₹11,436 crore in the final quarter. The Net Profit has gained a 5% lead in consolidated net profit sequentially.
The revival of the economy with the restart of pre-pandemic activities and offices, the momentum of demand that Indian IT companies observed during the peak of the Covid-19 pandemic from digitization expenditure by clients is diminishing. The consequences of high interest rates and the fall of banks in the US and Europe have put restrictions on many companies onto their spending.
Tata Consultancy Services (TCS), reported its highest-ever order book at $8.1 billion with a book-to-bill ratio of 1.2 in the fourth quarter of FY23. The IT major reported its order book total contract value (TCV) to be at $10 billion in the quarter under review. Its order book TCV stood at $34.1 billion for FY 2022-23. The company recorded an all-time high number of large deals in the quarter under review.
The company’s growth was majorly led by North America, followed by UK and India. The company also disclosed of raising the share of female employees in its work force to 35.7 per cent. The female workforce of the company comes from a total of 157 different companies.
Declaration of Dividend
TCS has declared a final dividend of Rs 24 per equity share for the financial year 2022-23.
“The directors have recommended a final dividend of Rs 24 per equity share of Rs 1 each of the company,” TCS said in a BSE filing.
The dividend will be paid on the fourth day from the conclusion of the 28th Annual General Meeting (AGM), subject to approval of the shareholders of the company. The record date for the dividend is yet to be announced.
Technical Analysis
TCS stock price has made a rebound from the 38.2% retracement level and receives crucial support at this level. The weekly MFI is at 34 points. This makes the stock highly oversold for the medium term. Considering the strong quarterly results of the final quarter, investors may accumulate the stock at the current levels. The target set for TCS would be placed at Rs 4000 levels.
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