Thursday, April 21, 2011

TCS Q4 numbers meet expectations, net up 3%

India's largest IT software services exporter Tata Consultancy Services (TCS) reported its fourth quarter net profit at Rs 2402 crore, a growth of 3% from its previous quarter net profit of Rs 2,330.2 crore (US GAAP). The company met street expectations. A CNBC-TV18 poll saw a profit growth at Rs 2,340 crore. For the financial year 2010-11, TCS reported net profit of Rs 9,068 crore versus expectations of Rs 8,621 crore.
The company attributed its performance in the January-March period, which was in line with street expectations, to excellent execution and constant customer focus. During the period, its revenue jumped by 5.1% to Rs 10,157 crore as against Rs 9,663.4 crore in previous quarter.

Talking about the company, TCS CEO N Chandra said: "The demand environment is vibrant and our full-services strategy and domain-intensive solutions give us great platform for growth."
On a quarter-on-quarter basis, the company's operating margin was down by 6 basis points at 28% . Earnings before interest and tax (EBIT) was at Rs 2,877 crore in fourth quarter, a growth of 6.04% compared to Rs 2,713.2 crore in previous quarter. CNBC-TV18 poll marked it at Rs 2,795 crore. EBIT margin witnessed slight improvement at 28.3% versus 28.1% (QoQ).

Company further said growth was led by developed markets of US and Europe. "Asia-Pac and West Asia continue to remain steady growth drivers. Insurance, Infra services, products, enterprise solutions are growing fast."

During the January-March quarter, the company's volume growth stood at 2.9% and attrition rate was at 14.4%. Utilisation was at 82.4% in period.

TCS said it sees opportunities across geographies and industries and is confident of its ability to mitigate challenges. "Certain headwinds remain in near-term, mid-term."

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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