TCS earnings in line with estimates: Madhu Babu, HDFC Securities

In a chat with ET Now, Madhu Babu, IT Analyst, HDFC Securities, shares his views on the TCS earnings.

ET Now: Status quo on your recommendation for TCS post these earnings as they are in line?

Madhu Babu: The numbers are mostly in line. So we are factoring in a lower growth because of the cross currency. So, 0.1% in a dollar term growth, just a tad below my estimate.

This has been factored in by the market and profits are in line with our estimates.

ET Now: What about cross currency losses? What did you factor on that front?

Madhu Babu: The cross currency impact has been negative for this company to a higher extent — around 220 bps. So, if you adjust for that, it would be 2.3% for the quarter. It is more or less in line with our estimate.