JM Financial's research report on Tata Consultancy
TCS reported 3QFY18 revenue growth broadly in-line with the moderated expectations; outlook was sanguine with a strong deal closure during the quarter + a healthy pipeline. Still, we expect FY19 USD revenue growth could remain in the 7-8% band, same as FY18, given the continued softness in BFS vertical (c25% of revenues, JMFe). Further, the profile of the incremental revenues + a strong INR should keep the margins around current levels.
Outlook
Thus, our operative assumptions and forecasts are largely unchanged; changes in the US taxation laws pose an incremental downside risk. Maintain HOLD with INR 2,680 PT.
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