Saturday, July 21, 2012

TCS rubs salt in Infosys' wounds with strong Q1 earnings


India's top software services provider Tata Consultancy Services  reported slightly better-than-expected results for April-June, a stark contrast to its rival and number two Infosys  , which had earlier in the day disappointed the street with a lower-than-expected quarterly profit and cut its full year US dollar revenue guidance sharply.

TCS first quarter net profit rose 38% year-on-year (14.6% sequentially) to Rs 3,280.5 crore, while revenue was also up 38% (up 12% quarter-on-quarter) to Rs 14,869 crore.

Analysts on average had expected TCS net profit at Rs 3,250 crore on revenue of Rs 14,806 crore, according to a CNBC-TV18 poll.

Bangalore-based Infosys had reported a lower-than-expected 33%year-on-year (down 1% sequentially) rise in first quarter net profit at Rs 2,289 crore, while revenue was barely in-line at Rs 9,616 crore, up 29% (up 9% quarter-on-quarter).

Infosys had flagged off some pricing pressures, slower IT spends and currency volatility for its poor performance.

TCS also said that unprecedented currency volatility continued to be a challenge in the short-term, but it continues to see good demand from global companies.

"We have seen strong secular growth across all our service lines and industry segments driven by robust volumes from key markets like North America, Europe and UK...Looking ahead, TCS continues to see good demand from global corporations as they successfully navigate an increasingly complex environment," said N Chandrasekaran, TCS' CEO and MD.

TCS said in the first quarter, growth was seen across all industry segments led by retail, telecom and BFSI (Banking, Financial Services and Insurance).

The company added 29 new clients in the quarter ended June 30. Aong key deal wins included a USD 100 million contract with a leading North American retailer, a multi-million dollar managed services contract by a North American communications solutions provider and a multi-year contract from an Australian financial institution.

TCS net added 4,962 employees in the quarter, taking its total employee strength to 2, 43,545 on a consolidated basis.

Its utilization rate, excluding trainees, was at 81.3%, while including trainees was at 72.3%.

TCS shares closed at Rs 1,236, down 1.8% on NSE on Thursday. The results were after the markets closed.



Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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