TCS results a miss on all parameters: Urmil Shah, IDBI Capital

In both rupee and CC terms, profit growth is less than expected, says Urmil Shah, Research Analyst and Vice President, IDBI Capital. Excerpts from an interview with ETNOW.


What is your reaction to the TCS numbers for Q2?
It appears the headline numbers are clearly a miss across revenue. The EBIT margin is even more disappointing and so is the flow through impact on profitability. The result on the face of it, is definitely a miss across all parameters.


The revenue number is 0.5-1% miss versus what the Street was anticipating in rupee terms. Or should we only look at the constant currency (CC) or the dollar terms?
Generally we should look at the CC term because that is what operationally the company has to manage with. The cross currency movement is not entirely in the company’s hands. So, it would be important to look at what is the CC growth that comes in but that also is more than a percentage point lower than expectations.