The speed of a strong deal by TCS shift focuses on long -term prospects away from short -term hiccups

Tata Consultancy Services (TCS) recorded a frustrating income and profit growth in the March quarter, which reflects delays in project ramp ups by consumers amid rising economic uncertainty in large global markets. However, the country’s largest Software Fatware Exports showed a steady momentum in the new orders during the quarter when the capital costs (capex) for the financial year 25 from the previous year, showed that the company was in a good position to take advantage of future opportunities.

In the March quarter, the average expectation of analysts has dropped by 1%, respectively, at 7,465 million, compared to a 0.7% drop. In terms of rupee, revenue increased 0.8% to Rs 64,479 crore while net profit fell 1.3% to Rs 12,224 crore. Analysts expected that revenue would increase by 1.3% and 1.6%, respectively. In addition, the overating petting margin (EBIT margin) is compressed up to 24.2% by 30 basis points, unlike the expectation of 40-50 basis points.

Take a look at the data of the entire year, despite the company tapping revenue growth since FY 22, focusing on maintaining the operating margin in the tight range, when it jumped 15.9% on a low base of 0.6% in the previous year, affecting the Kovid epidemic. For the financial year 25, revenue increased by 3.8%, 30,179 million, which is slower than the previous two years, while the margin was the highest in the above period of 24.7%. This shows its ability to use the liver to maintain profitability during the difficult demand scenario.

Constantly focusing on investments to improve capabilities is another positive. The company has paid Rs. Capex of Rs 4,977 crore was carried out, indicating an increase of 88% on the FY 24 outgoes of RS 2,650 crore. It was deployed to expand infrastructure, enhance technical skills and staff capabilities, and strengthen professional partnerships.

During the fourth quarter the deal of the deal improved as the company has made $ 12.2 billion of new projects. It was admirable because no mega deal was won to run this number, in the year ago, when it gained a total contract value of $ 13.2 billion, which won the quarterly new deal.

When the attrition rate was 13.3% by 30 basis points, respectively, in the March quarter, the management did not consider it challenging. It expects that the same college from the college leg campus, the same, will add fresh recruits. While this reflects his confidence in the long -term demand scenario, he has postponed the salary increase until further instructions in the short -term uncertainties.

The stock is available on the back of 25.6 of the price-atmosphere (P/E), which is compared to the average valuation of 30 years. Discount valuation reflects the pressure on stock in recent months amid uncertainties of demand. So far, the stock has dropped by about 21% in 2025. It was last traded at Rs 3,246.1 on the BSE on April 9.