Sun, May 19, 2024

TCS: TCS Q4: Record Orders Boost Near-Term Revenue Visibility – Experts

The TCS shows good revenue growth in Q4 and 9% rise on year to Rs.12434Cr and overall year on Year revenue rose to Rs.61237 cr. Operating margin increased to 26% fulfilled the investors view.

TCS have good order book shows less slowdown impact in this company and IT Sector slowdown in the Global economy.

TATA CONSULTANCY Market price has broken Ascending channel in downside

TATA CONSULTANCY Market price has broken Ascending channel in downside

Experts are lauding Tata Consultancy Services (TCS) for its fourth-quarter financial performance, emphasizing the significance of the IT firm’s robust order book in providing visibility for near-term revenue.

Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas, highlighted that TCS’ order wins during the quarter contribute to a clearer revenue projection in the short run. He expressed confidence in TCS’s ability to capitalize on cost optimization and transformational opportunities amidst receding sectoral challenges, attributing this to the company’s strong order book, domain expertise, and disciplined execution.

TCS reported a nine percent year-on-year increase in net profit to Rs 12,434 crore for the fiscal fourth quarter, with a 3.5 percent year-on-year revenue growth to Rs 61,237 crore. Operating margins expanded by 100 basis points to 26 percent, surpassing estimates from Moneycontrol polls.

Experts suggested that TCS has likely overcome the worst of the IT sector’s slowdown, characterized by sluggish discretionary spending in the US. Kranthi Bathini, director of equity strategist at Wealthmills Securities, noted the company’s better-than-expected results and improved margins, indicating a favorable outlook amid business uncertainties.

Software Experts

Prashant Tapse, Senior VP Research at Mehta Equities, acknowledged weaknesses in revenue from the BFSI segment and North America region but highlighted TCS’s overall performance meeting expectations, particularly with a record-high order book for Q4FY24. Attention now turns to Infosys’ forthcoming results on April 18 for insights into the IT sector’s recovery trajectory.

Despite positive indicators, concerns persist regarding recruitment. Purvesh Shelatkar, head of institutional broking at Monarch Networth Capital, pointed out reductions in employee count and campus recruitment, signaling underlying stress.

TCS management, however, remains optimistic about margins. CEO K Krithivasan emphasized a quarter marked by strong deals and execution, underpinned by a continuous focus on operational excellence.

Looking ahead, TCS reported a record Total Contract Value (TCV) of $13.2 billion for the quarter and an all-time high order book TCV of $42.7 billion for the fiscal year. K Krithivasan remained cautiously optimistic, indicating a potential return to growth by Q2FY25 amidst global macro uncertainties.

“In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership,” said K Krithivasan.

Pratham EPC Projects LTD: Pratham EPC Secures Rs 497-cr Order, Stock Soars 20%

The Pratham EPC Projects bagged the order of Rs.497 Cr from Sun Petro chemicals for installation of Crude Oil onshore or offshore pipeline across Gulf of Khambat and other fields of Gujarat and project must completed in 36 months.

PRATHAM EPC PROJECTS Market Price has broken box pattern in upside

PRATHAM EPC PROJECTS Market Price has broken box pattern in upside

Pratham EPC Projects Limited, a newly listed entity that made its stock market debut in March, witnessed a remarkable surge of 20 percent in its share price, hitting the upper circuit. This surge followed the company’s announcement of securing a significant order worth Rs 497 crore, an amount more than double its market capitalization of Rs 241 crore.

In a regulatory filing on April 12, the company disclosed that it had successfully won a work order valued at Rs 497 crore from Sun Petro Chemicals. The order pertains to an Engineering, Procurement, and Construction (EPC) contract for onshore or offshore crude oil pipelines in the Gulf of Khambhat and other regions of Gujarat. The project is slated for completion within the next 36 months.

Oil pipeline

Established in 2014, Pratham EPC Projects Limited specializes in providing services to the oil and gas sector in India, particularly focusing on gas pipeline projects. Its expertise spans various project management aspects, including engineering, procurement, construction, and commissioning.

The successful listing surpassed expectations, with the grey market premium reaching Rs 27, indicative of investor confidence in the company’s prospects.

Sandhar Technologies: SKF, Sona BLW, Sandhar Tech Surge Ahead of Elon Musk’s India Visit, Boosting EV Stocks

The Tesla Owner Elon Musk is coming to India in this month announcement makes Tesla car suppliers like Sandhar Technologies, Varroc Engineering, Sona BLW Forgings shares increased last day. India PM Modi had visited last month to US, Elon Musk confirmed with India PM Modi, Iam confident on setup Electric Car plant in India. So Vendor base is needed to setup local electrical car worth of Rs.25lakh in India, So Vendor of Tesla Car suppliers increasing in the shares due to upcoming visit of Elon musk to India.

SANDHAR TECHNOLOGI Market Price is moving in Ascending channel and market has reached higher low area of the channel

SANDHAR TECHNOLOGI Market Price is moving in Ascending channel and market has reached higher low area of the channel

On April 12, the stock prices of several auto ancillary companies, including Sandhar Technologies and Sona BLW Precision Forgings, surged by up to 7 percent following an announcement by Tesla CEO Elon Musk regarding his upcoming visit to India. Musk revealed via a post on X platform on April 10 that he is eagerly anticipating a meeting with Prime Minister Narendra Modi during his visit.

This visit is widely interpreted as a significant step toward bringing Tesla, the electric vehicle (EV) giant, to India, consequently leading to a surge in the shares of Indian companies that supply parts to Tesla.

Last year in June, after meeting with PM Modi in New York, Elon Musk expressed confidence in Tesla’s entry into India at the earliest opportunity. It is anticipated that during his forthcoming visit, Musk will unveil plans for an ambitious project to establish a factory in India.

Reports suggest that Tesla may invest up to $3 billion in setting up a factory for manufacturing entry-level electric cars locally. These cars, speculated to be the Model 2, could be priced around Rs 25 lakh.

Musk’s visit is viewed as a positive sign of Tesla’s entry into India, especially following the recent unveiling of India’s electric vehicle policy, which offers concessions to foreign carmakers selling fully imported cars in India but committing to local manufacturing.

Tesla’s India Supplier Base and Potential Benefits

According to the Bloomberg supplier database, Tesla currently has five suppliers based in India, including Sona BLW Precision Forgings, Hindalco Industries, Samvardhana Motherson International, Suprajit Engineering, and Varroc Engineering. While the specific products supplied by these companies to Tesla remain uncertain, they stand to benefit significantly if Tesla commences local manufacturing.

Tesla has already agreed to the Indian government’s proposal to establish a vendor base in India. The company has been urged to initiate the assembly of electric cars in India, followed by the establishment of the vendor base. Should Tesla decide to commence manufacturing in India, it will need to relocate its vendors from China to India.

electric vehicle

For this purpose, Tesla has reportedly been in discussions with auto component suppliers such as Sandhar Technologies and Bharat Forge, both of which are already supplying components to Tesla.

Stock Rally of Tesla’s India Suppliers

Shares of Sona BLW Precision Forgings surged over 7.5 percent to an intraday high of Rs 706.10 on the National Stock Exchange (NSE). Similarly, SKF India witnessed a nearly 3 percent rise in its share price. Sandhar Technologies also gained nearly 3 percent on April 12. Suprajit Engineering and Varroc Engineering, which are also Tesla suppliers, saw their shares rise by 2 percent intraday.

These companies stand to benefit from Tesla’s potential manufacturing presence in India, with Sandhar Technologies being a significant supplier of components for Tesla’s Model 3, among others. Varroc Engineering has already supplied lighting systems for Tesla vehicles, positioning itself as a key player if Tesla decides to establish a manufacturing plant in India.

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