Saturday, October 27, 2012

TCS tops expectations with 44% YoY rise in Q2 net profit


Tata Consultancy Services  maintained its lead at the top of India's software services exporters with a 44% year-on-year (7% quarter-on-quarter) rise in second quarter net profit at Rs 3,512 crore, helped by new deal wins.

Its net sales in July-Sep were up 34% from a year ago (5% sequentially) to Rs 15,621 crore.

Analysts on average had expected TCS to report a net profit of Rs 3,383 crore on revenue of Rs 15,555 crore, according to a CNBC-TV18 poll.

Dollar revenue at USD 2.85 billion too was above analysts expectations of USD 2.84 billion.

TCS' results strengthen its dominance over rival and India's second largest IT company Infosys  , which disappointed yet again in the second quarter. Earlier this week HCL Tech  too reported better-than-expected earnings , a sign that Infosys has some specific issues of its own.

TCS said growth was broad-based and seen across all industry segments led by manufacturing, retail telecom and BFSI (banking, financial services and insurance).

Its volumes grew 5% during the quarter.

"We have delivered a strong performance with well-rounded growth across industries and geographies. As the global operating environment continues to evolve, there is little doubt that technology is playing a more pivotal role to shape the future of every industry than ever before," said CEO and MD N Chandrasekaran.

While the company outperformed on the top-line as well as bottom-line, its margins took a knock. Its operating margins last quarter declined 70 bps sequentially to 26.8%.

TCS added 41 clients during the quarter and had a utilization rate of 81.6%, excluding trainees.

It net added 10,531 employees in the second quarter and said attrition rate at 11.4% across IT and BPO operations was lowest in the last 10 quarters.

On a consolidated basis, TCS had 2,54,076 employees as of Sep 30.

NEW CFO ANNOUNCED

TCS also announced that Rajesh Gopinathan, currently vice president, business finance would take over as the next CFO once S Mahalingam retires on Feb 9, 2013.

Effective Friday Gopinathan will be the deputy CFO.

TCS shares closed down 1.4% at Rs 1,289.70 on NSE. The results were announced after markets closed.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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