TCS Q1 FY13 results: Ten important takeaways
Tata Consultancy Services does not give guidance, but going by management commentary it looks very positive.
By ET Bureau | Updated:
The country's largest software services exporter, Tata Consultancy Services ( TCS) on Thursday reported a 37.4 per cent rise in its fiscal first-quarter profit, helped by a weaker rupee and increase in demand for outsourcing. According to analysts the results are in line with estimates and not disappointing like Infosys Technologies.
TCS posted net profit of Rs 3280 crore ($589 million) for the quarter ended in June, compared with Rs 2380 crore a year earlier. Revenue rose 37.7 per cent from a year earlier to Rs 1,4869 crore.
Highlights: Infosys, TCS Q1 Earnings
ET takes a look at the 10 important details related to the TCS results:
Guidance: TCS does not give guidance, but going by management commentary it looks very positive.
Hiring: There was a total gross addition of 13,831 and net addition of 4,962 taking total strength to 243,545. Lateral hiring accounted for 75% of total hiring in Q1. Attrition is 12%. Maintains hiring guidance of 50,000 in FY13. Employee utilization rate was 81.3%, excluding fresh recruits.
Cash Pile: The company is sitting on some $2 billion of cash...
Pricing: Pricing drop of 1.3% and volume increase of 5.3%.
Projects: TCS saw migration of clients with addition of 29 new clients. Won new deals in mobility, big data and social, HR BPO, analytics and finance & accounts BPO. Signed new $100 million contract with North American retailer.
Strategy: The strategy seems to be paying off, with emphasis on technologies like mobility, cloud and Big Data.
Verticals: BFSI grew 5.3% Sees big role for technology in BFSI and that’s playing out. retail, Telco grew 7.6% and retail grew 8.3%.
Geographies: N America grew 5,3%, India fell 7%. Major markets led by US, UK and Europe grew and so did Latin America.
Sales & Marketing: While in case of TCS their marketing and promotion expenses were lower on LTM basis with 0.41% of revenue in Q1 2013 at $11million against 0.49 % of revenue a year ago at $12million, but marginally higher that previous quarter which was 0.34% of revenue in Q4 2012 at $9million.
Service Offerings: TCS saw strong secular growth across service lines and offerings including BFSI, telecom and retail.
TCS posted net profit of Rs 3280 crore ($589 million) for the quarter ended in June, compared with Rs 2380 crore a year earlier. Revenue rose 37.7 per cent from a year earlier to Rs 1,4869 crore.
Highlights: Infosys, TCS Q1 Earnings
ET takes a look at the 10 important details related to the TCS results:
Guidance: TCS does not give guidance, but going by management commentary it looks very positive.
Hiring: There was a total gross addition of 13,831 and net addition of 4,962 taking total strength to 243,545. Lateral hiring accounted for 75% of total hiring in Q1. Attrition is 12%. Maintains hiring guidance of 50,000 in FY13. Employee utilization rate was 81.3%, excluding fresh recruits.
ADVERTISEMENT
Cash Pile: The company is sitting on some $2 billion of cash...
Pricing: Pricing drop of 1.3% and volume increase of 5.3%.
Projects: TCS saw migration of clients with addition of 29 new clients. Won new deals in mobility, big data and social, HR BPO, analytics and finance & accounts BPO. Signed new $100 million contract with North American retailer.
Strategy: The strategy seems to be paying off, with emphasis on technologies like mobility, cloud and Big Data.
ADVERTISEMENT
Verticals: BFSI grew 5.3% Sees big role for technology in BFSI and that’s playing out. retail, Telco grew 7.6% and retail grew 8.3%.
Geographies: N America grew 5,3%, India fell 7%. Major markets led by US, UK and Europe grew and so did Latin America.
ADVERTISEMENT
Sales & Marketing: While in case of TCS their marketing and promotion expenses were lower on LTM basis with 0.41% of revenue in Q1 2013 at $11million against 0.49 % of revenue a year ago at $12million, but marginally higher that previous quarter which was 0.34% of revenue in Q4 2012 at $9million.
Service Offerings: TCS saw strong secular growth across service lines and offerings including BFSI, telecom and retail.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
TCS Q4 drags down IT stocks; Swiggy cofounder exitsADVERTISEMENT
