* TCS’ 3QFY19 revenue rose 1.8% QoQ in CC terms, while EBIT margin declined 90bps QoQ owing to higher wage costs and SG&A expenses.

* From a vertical perspective, Life Sciences & Healthcare (+2% QoQ), Energy & Utilities (+2.9%) and Regional Markets & Others (+2.3%) saw decent growth in USD terms.

* The IT major won US$5.9bn in TCV in 3QFY19, up by >20% QoQ, implying a book-to-bill ratio of 1.12x (0.94x in 2QFY19). f Digital crossed 30% of total revenue in 3QFY19 (28.1% in 2QFY19), up 7.8% QoQ in CC terms.

* We expect the IT major to clock double-digit growth in FY20E.

* High payouts (100% of FCF) in the form of share buybacks, plus improving business visibility will ensure the stock remains at elevated valuations.
* We have a BUY rating on TCS with a TP of Rs2,190.

Courtesy by : Daily Hunt