TCS Limited Q3 FY22 - Earning Highlights | Globe Capital
13-Jan-2022
TCS Limited Q3 FY22 – Earning Highlights

The company’s performance was strong, reflecting the impact of unlocking the economy prior to the second wave.

Q3 FY22 Overview and Verdict
CMP
Rs. 3857
Verdict
Inline with the Expectations
  • Revenue at Rs. 48,885 crore, +16.3% YoY; +15.4% Constant Currency YoY
  • Operating Margin at 25%; -1.6% YoY
  • Net Income at Rs. 9,769 crore, +12.3% YoY
  • Its Net Margin at 20%
  • Strong Client Addition: 10 New $100Mn+ Clients (total: 58); 21 new $50Mn+ clients (total: 118)
  • Net Cash from Operations at Rs.10,853 crore ie 111.1% of Net Income
  • Net headcount addition of 28,238 in this quarter after that its total workforce strength at 556,986
  • LTM IT Services attrition rate at 15.3%; lowest in the industry
  • Dividend per share at Rs 7/- Its Record date 20/01/2022 & Payment date 07/02/2022.

As per the management, its continued growth momentum is a validation of its collaborative, inside-out approach to the customers’ business transformation needs. Customers love its engagement model, end-to-end capability, and its can-do approach to problem-solving. While mapping out their innovation and growth journeys, it is also helping them execute new-age operating model transformations to support those journeys.

 

Buyback Announcement:

Its board has approved a share buyback proposal amounting up to Rs 18,000 crore. With this, TCS has become the first technology company to go for a buyback of its shares in FY22.
The company will buy back shares at Rs 4,500 per share, it said in an exchange filing. That is a 16.58% premium to Wednesday’s closing price.

 

Valuation & View:

At the CMP of Rs 3857, the stock is trading at annualised P/E multiple of 37.6 times with the annualised EPS of Rs 102, which is fairly valued. Driving accelerated business value realization of its customers’ digital investments has resulted in broad-based revenue growth. The strong order book, a very robust deal pipeline, and continued market share gains give confidence for the future.

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