TCS Q4 net profit rises 6.2% QoQ; here's what experts have to say

IT major Tata Consultancy Services (TCS) reported a 6.26 percent rise in consolidated net profit at Rs 9,246 crore in Q4FY21 as compared to Rs 8,701 crore in the previous quarter. The company's consolidated revenue in Q4FY21 increased 4 percent to Rs 43,705 crore from Rs 42,015 crore in the December quarter. A CNBC-TV18 poll had estimated a revenue of Rs 43,660 crore.

Market Expert Prakash Diwan said, "In spite of the wage hike and a lot of the concerns the company has managed to give a very strong margin picture. That combined with the fact that you have some very strong contracts that they have got into, the new orders etc, so the visibility is good enough for all of us to go back into our models and pencil in a slightly higher EPS upgrade. Today's sell-off in the market got some sheen off the stock, but it would probably come back after these numbers."

Suyog Kulkarni, Senior Research Analyst at Reliance Securities expects TCS valuations to remain at elevated levels as growth is likely to be in high double digits.