The Company announced a special dividend of Rs 67 per share and an interim dividend of Rs 8 per share.
Q3FY23 Earning Key Highlights
The management is pleased with its strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and UK. The sustained strength of demand for its services is a validation of the value it provides to its clients in helping them differentiate themselves, while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, its longer-term growth outlook remains robust.
TCS bagged deals worth $7.5 billion in the quarter, which was slightly lower than what it was in the preceding two quarters. In the first two quarters of the current financial year, the company bagged deals worth $8 billion.
As per the management its longer-term growth outlook remains robust. Improved productivity, currency support and abating supply-side challenges helped expand our operating margin in Q3 FY23.
Among major markets, North America and the UK led the sales growth for the software major, rising more than 15%. Both these markets make for 2/3rd of the total revenue for TCS and 3/4th of its profits.
Valuation & View
At the CMP of Rs 3319, the stock is trading at annualised P/E multiple of 29.6 times with the annualised EPS of Rs 112.06, which is fairly valued. The strong order book, a very robust deal pipeline, and continued market share gains give confidence for the future.
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