TCS delivered another quarter of strong results, sending its shares as much as 5% higher. TCS shares settled 4.8% higher at 2,110. TCS reported a better-than-expected 2.4% quarter-on-quarter growth (12.7% on year-on-year basis) in constant currency revenue in its fourth quarter ended March 31, 2019. This was the strongest revenue growth TCS had in the last 15 quarters.

Growth was broad-based, with most verticals showing strong growth. Revenue growth continued to accelerate in the key banking, financial services and insurance (BFSI) vertical.

“From vertical perspective, all-round traction was witnessed with the key BFSI vertical growing in-line with the company average. This is a key positive," Reliance Securities said in a note.

TCS, India's biggest software exporter, said the company has achieved healthy order flows across multiple segments and from all major markets including Europe, the United Kingdom, India and the Middle East.

TCS bagged contracts of $6.2 billion last quarter, higher than the $5.9 billion of deals it secured in the December quarter.

“TCS’ strong order wins, improving growth in BFSI, all-round vertical growth, rising digital revenue and healthy Q4 exit rate drive confidence on underlying momentum, and we expect the IT major to comfortably post double-digit revenue growth in FY20. We are encouraged with margin management in a challenging environment. High payouts to shareholders in the form of buybacks, along with good visibility will ensure the stock remains at elevated valuations," Reliance Securities said in a note.

Reliance Securities has revised TCS target price higher to 2,300, from 2,190 earlier, while maintaining “Buy".

"Though Q4FY19 operating margin dipped 50 bps QoQ, FY19 margin improved 80 bps year-on-year. We attribute the latter to higher growth and excellent execution. Moreover, TCS’ investments in digital capabilities and sales initiatives are now reaping dividends. We believe, margin will sustain at the current level on account of robust revenue growth and tight leash on attrition," Edelweiss Research said in a note.

Centrum has also raised TCS target prices higher to 2,220/share. "Q4 revenue beat and a favourable exit revenue run-rate leads us to marginally raise USD revenue growth assumptions," the brokerage said.

"Attrition remained modest at 11.4% and remains a key positive for TCS (vs Infosys reported standalone attrition of 18.3%). TCS’ ability to better retain talent could also have helped it deliver superior margin execution (vs Infosys, which has done multiple wage interventions in FY19 to stem attrition)," Centrum Broking said.

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