TCS Q2 FY25 earnings conference call Summary

                            Summary of the TCS Q2 FY25 earnings conference call 

1. Revenue Performance:
   • Revenue grew 5.5% year-on-year in constant currency
   • Q2 operating margin was 24.1%, declining 60 basis points sequentially
   • Net margin was 18.5%
2. Deal Momentum:
   • Strong deal momentum with order book at $8.6 billion for Q2
   • Total Contract Value (TCV) was within the comfort range of $7-9 billion
3. Sector Performance:
   • BFSI showed signs of recovery, especially in North America
   • Life Sciences and Healthcare faced client-specific challenges
   • Manufacturing saw some near-term pressure due to labor and supply chain issues
   • Consumer Business Group experienced softness in discretionary spending
4. Geographic Performance:
   • Growth markets (India, APAC, Latin America, Middle East and Africa) performed well
   • North America saw some weakness, partly due to client-specific issues
5. AI and GenAI Progress:
   • Over 600 AI/GenAI engagements, up from 270 last quarter
   • 86 GenAI engagements went into production, compared to 8 last quarter
6. Workforce:
   • Total workforce at 612,724
   • Net addition of 5,726 employees in Q2
   • LTM attrition in IT services decreased to 12.3%
7. Future Outlook:
   • Cautious optimism about improved discretionary spending
   • Expecting gradual easing of inflation and improving macroeconomic trends
   • Focus on cost optimization and efficiency remains a priority for clients
8. Strategic Focus:
   • Investing in growth markets for long-term growth
   • Strengthening partnerships with ISV and ecosystem partners
   • Emphasis on building resilience with clients
9. Challenges:
   • Some client-specific issues impacting revenue in certain sectors
   • Continued caution in discretionary spending by clients
   • Geopolitical uncertainties affecting overall business environment
10. Capital Allocation:
    • Interim dividend of ₹10 per share declared
    • Commitment to returning surplus free cash flow to shareholders.

SBI ELLIOTTWAVE COUNTS

Lets look at SBI wave structure ,The preferred count follows.

From highs looks to have completed a impulse down,5th finished with a double bottom,Which makes me think to have a alternate count handy ,As of now lets stick to this count .So we are nearing a up finish,Which suggests a dip coming.Lets see how this does going forward.

Banking stocks icicibank hdfcbank

A post after quite sometime.

ICICI bank came up with results today,Seems to be a good set of numbers.The very short term chart shows abcde done and stocks looks set for good move on monday above 900 can really shoot.

Now lets look at Hdfc bank the chart shows 123 done and stock attempting a 4th wave 

The present structure looks like a small wedge in making which could be a B wave so a possibility of a fall in C to retest breakout trendline cant be ruled out.This stands failed if in present move the price breaches 3rd high. So overall gist would be if ICICI shoots big HDFC bank falls to sober down banknifty :),Interesting Monday session looking forward to see how this plays out.

Nifty and midcap index

Dear friends,

                       Nifty made a top on 1st dec wheras midcap index made top on 15th dec .

Nifty fell 5.9% high low and Midcap indec fell 8.6% high low. I scanned nifty 500 to sort which stocks under performed and outperformed.

The above stocks outperformed ,Mostly pharma stocks ,Covid scare did the trick .So even though the index fell by over 8% these stocks ran hansomely. Lets see underperformance.

The above list shows the big fall witnessed by stocks ,Many psu banks in the list,They shot up very fast too so saw a melt down .