SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMCNet:  TCS net up 50%; co sees stronger next fiscal [DNA : Daily News & Analysis (India)]

[January 18, 2014]

TCS net up 50%; co sees stronger next fiscal [DNA : Daily News & Analysis (India)]

(DNA : Daily News & Analysis (India) Via Acquire Media NewsEdge) Mumbai: Tata Consultancy Services (TCS), India's largest IT services provider, on Thursday reported a net profit of Rs 5,314 crore for the quarter ended December, up almost 50% on-year and 13% on-quarter. TCS also reported the highest quarterly utilisation it has ever seen at 84.3%.


Revenue rose 32.5% on-year (and 1.5% on-quarter) to Rs 21, 294 crore, ahead of Bangalore-based Infosys but lower than that of HCL Technologies (read the report alongside). In dollar terms, TCS's revenue grew 3.8% in the December quarter, lower than HCL Tech's 4% but higher than Infosys's 1.6%.

But that did not cheer the industry experts who said they were disappointed because the TCS numbers came in line with, and did not exceed, their expectations. Usually, TCS beats expectations, they said.

International volume growth was encouraging at 2.1%, reinforcing the view that the next fiscal may well be better on the back of better discretionary spends with more opportunities for pricing uptake. Dipen Shah, head-private client group research, Kotak Securities, said, "The volume growth in international business is encouraging, and reflects effective demand-generation initiatives and efficient execution." In the December quarter, TCS bagged eight deals across verticals, two of them over $50 million each.

The company reported operating margins of 29.7% for the quarter, lower than last quarter. The company attributed this fall to reinvestment of gains from margin into the business.

"Sustaining our investments in customer-facing initiatives globally, we have also been able to significantly increase our cash generation due to efficient working capital management," said Rajesh Gopinathan, TCS's CFO.

TCS also disappointed in terms of domestic volume growth, which came in at 1.8%, impacted by seasonality, rupee appreciation and a 9% slump in the Indian business.

In comparison, TCS's nearest rival, Infosys, has reported two quarters of high growth from India, including 8.1% in the December quarter.

Credit:Beryl Menezes (c) 2014 @ 2014 DILIGENT MEDIA CORPORATION LTD. ALL RIGHTS RESERVED

[ Back To Technology News's Homepage ]

OTHER NEWS PROVIDERS







Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2014 Technology Marketing Corporation. All rights reserved | Privacy Policy