Indian equities were caught in the global volatility as growing anxiety that the spread of Covid-19 variants will knock back growth reversed the recent rally. With fresh virus waves hitting Asian and European countries, global bankers seem unconvinced about a smooth economic recovery. The SGX Nifty is indicating another weak opening for the markets.
Wall Street closed lower on Thursday, retreating further from recent records, amid a global sell-off. Investors worry the recent growth peak in both the US and abroad has passed and that new coronavirus variants will hurt the outlook. Fed’s meeting minutes showed policymakers’ standard of substantial further progress on the economic recovery was generally seen as not having yet been met.
TCS Q1FY22 earnings review
TCS Q1FY22 was a mixed bag with a subdued revenue performance while operating margin was in-line with our estimates
– $ Revenue came in at $ 6,154 Mn, +2.8% qoq / 21.6% yoy and -1% above our estimates
– INR revenue came in at INR 454,110 Mn, +3.9% qoq / +18.5% yoy and -1% above our estimates
– EBIT was reported at INR 115,880 Mn, -1.2% qoq / +28.1% yoy and -1.2% above our estimates
– EBIT translated into margins of 25.5%, vs 26.8% / 23.6% in Q4FY21 / Q1FY21 respectively and in-line with our estimates
– PAT came in at Rs 90,080 Mn, -2.6% qoq / +28.5% yoy and -5.6% below our estimates
– EPS at Rs 24.35 in Q1FY22 vs 24.9 / 18.6 in Q4FY21 / Q1FY21 respectively
– Deal wins in the quarter stood at $8.1 Bn -12% qoq / +17% yoy
– Lifesciences and Healthcare led the growth +7.3% qoq / +25.4% yoy, followed by Technology & Services at 5% qoq / 12.3% yoy. BFSI performance was slightly subdued at 3.1% qoq / 19.3% yoy while Retail grew at 4.4% qoq and double digit yoy
– Company also declared a final dividend of Rs 7 per share
Other Highlights
– Company added 20,409 employees
– OCF stood at 114% of Net Income
Stocks in news/ Key Updates
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Spurt in outsourcing, digital deals to drive IT sector rebound: Crisil
Vehicle registrations in June increase 23% on last year’s low base
Future deal: SC to hear on July 20 Amazon plea against HC verdict
Union Bank of India to raise up to Rs 1,150 cr by issuing bonds
IPO-bound Zomato says it’ll launch grocery delivery on its app soon. Zomato prices its IPO at Rs 72-76 per share; offer open between July 14-16
SPARC raises over Rs 1,110 cr; issues warrants to Dilip Shanghvi
Larsen & Toubro Infotech completes acquisition of Cuelogic Technologies
Cairn says it has won court order to freeze India state assets in Paris
Macrotech Developers Q1 sales bookings surge 88% to Rs 957 cr despite Covid
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