TCS reported a third consecutive quarter of all-round performance in Q4FY21. Revenue grew by 4.2% QoQ in CC (3rd consecutive quarter of 4%+ QoQ growth), higher than our forecast of +3%. However, EBIT margin improvement of ~20bps QoQ to 26.8% was slightly lower than our forecast of 27.3%, said IDBI Capital in its report.

In Q4FY21, TCS has secured deals with an all-time high TCV of USD 9.2 billion taking the FY21 TCV to USD 31.6 billion, +17% YoY. TCS has maintained its positive outlook and is confident of achieving a double-digit YoY revenue growth in CC for FY22.

Post Q4 earnings, IDBI Capital said,  "We fine-tune our forecast of revenue/EPS CAGR of 11.8%/14.4% over FY21-23. We maintain 'Accumulate' and TP to Rs 3,530 based on PER of 30x FY23E.

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