TCS revenue grows 6.4% to $3.9bn in Q2 Continues To Widen Lead With Rival Infosys Tata Consultancy Services’ (TCS’) financial results for the September quarter came in below analysts’ expectations. But India’s biggest IT company continued to widen its lead with its closest Indian rival Infosys. The dollar revenues grew at twice the pace of growth of Infosys’ revenues in the quarter. TCS’ dollar revenue grew sequentially by 6.4% to $3.9 billion and 17.7% compared to the year-ago quarter, driven by strong volume growth. In rupee terms, its revenue grew 7.7% sequentially to Rs 23,816 crore and 13.5% compared to the year-ago period. Infosys, in comparison, grew by 3.1% in dollar terms. “Driven by strong volumes and robust utilization rates, this has been a quarter of steady, consistent performance. Our well-rounded showing has been highlighted by broadbased growth in our key markets, industries and services as we continued to deepen our engagement with customers,” said TCS’ CEO N Chandrasekaran. The company reported a volume growth of 6.1% sequentially. Its net profit stood at $872 million, up 3.2% compared to the preceding quarter and 17.8% over the year-ago period. In rupee terms, it posted 5.8% drop in net profit to Rs 5,244 crore sequentially and jumped 13.2% compared to the same period last year. Anikta Somani, IT research analyst at MSFL Research, said TCS’ revenue growth as well as bottom line missed expectations after al most eight quarters of beating or matching consensus expectations. “Revenues were impacted due to unfavorable cross currency movement, revenue decline in Latin America and relative softness in insurance & retail industry verticals,” she said. TCS’ operating margin for the second quarter was 26.8% compared to 26.3% in the preceding quarter. Growth in the second quarter was broadbased led by North America, Europe and UK. Emerging markets continued to be volatile but the India market beat expectations. Its Japanese IT services entity provided additional growth to units like manufacturing and hi-tech. Recently, TCS consolidated its operations in Japan with local conglomerate Mitsubishi creating a $600-million enterprise in which TCS has a controlling interest. “The entity contributed $103 million for the quarter,” Chandrasekaran said.
Posted on: Fri, 17 Oct 2014 11:25:01 +0000
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