TCS in focus after Q1 results

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IT major TCS after trading hours on Thursday, 18 July 2013, said its consolidated net profit rose 5.9% to Rs 3831 crore on 9.5% growth in revenue to Rs 17987 crore in Q1 June 2013 over Q4 March 2013. Operating profit rose 12% to Rs 4847 crore in Q1 June 2013 over Q4 March 2013.

TCS said growth in Q1 June 2013 was seen across all industry segments, led by life sciences, retail, telecom and BFSI. There was balanced growth across IT and other service lines led by Assurance, EiS, Global Consulting and Asset Leveraged Solutions. Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific, TCS said in a statement. The company added two new $100 million clients in Q1 June 2013.

During the quarter, TCS closed the acquisition of Alti, one of the top 5 system integrators of SAP solutions in France with several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers.

TCS said it continued to hire employees to support business growth. There was a total gross addition of 10,611 people and net addition of 1,390 people in Q1 June 2013, taking the total employee strength of 277,586 on a consolidated basis. The utilization rate (excluding trainees) was at 82.7% and that including trainees was 72.5%. The attrition rate (LTM) dropped further sequentially to 10.52% including BPO. The attrition rate in IT was at 9.55%, while BPO attrition was higher at 15.77%.

Commenting on the Q1 performance, TCS Chief Executive Officer and Managing Director N Chandrasekaran said: "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter. Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth".

TCS Chief Financial Officer Rajesh Gopinathan said: "The current environment demands an agile operating model that can capture diverse growth opportunities. We continue to execute to plan and invest for growth, while maintaining stability in our margin profile".

Bajaj Auto, HDFC and Reliance Industries will declare their Q1 June 2013 results today, 19 July 2013.

Bajaj Corp's promoters will sell 1.43 crore equity shares, or 9.75% stake in the company through Offer for Sale (OFS) route on stock exchanges today, 19 July 2013. Floor price for the share sale is fixed at Rs 200 per share. The OFS will commence at 9:15 IST and end at 15:30 IST.

Pharma companies including Ranbaxy Laboratories, Dr Reddy's Laboratories, Glenmark Pharmaceuticals and Cipla may decline on reports that they are likely to face penalties for allegedly selling an anti-asthma drug without prior price approval.

BEML said it won an order worth Rs 747 crore from Delhi Metro Rail Corporation. The order will boost the present order book of BEML to Rs 6400 crore.

On a consolidated basis, Rallis India rose 13.7% to Rs 27.49 crore on 20% increase in net sales to Rs 409.31 crore in Q1 June 2013 over Q1 June 2012.

Jaiprakash Associates turns ex-dividend today, 19 July 2013, for dividend of 50 paise per share for the year ended 31 March 2013 (FY 2013).

Jaypee Infratech turns ex-dividend today, 19 July 2013, for dividend of Rs 1 per share for the year ended 31 March 2013 (FY 2013).

Greaves Cotton turns ex-dividend today, 19 July 2013, for final dividend of 50 paise per share for the year ended 31 March 2013 (FY 2013).

Ipca Laboratories turns ex-dividend today, 19 July 2013, for final dividend of Rs 2 per share for the year ended 31 March 2013 (FY 2013).

Madras Cements turns ex-dividend today, 19 July 2013, for final dividend of Rs 1 per share for the year ended 31 March 2013 (FY 2013).

Monsanto India turns ex-dividend today, 19 July 2013, for final dividend of Rs 12 per share for the year ended 31 March 2013 (FY 2013).

Geometric turns ex-dividend today, 19 July 2013, for final dividend of Rs 1.70 per share for the year ended 31 March 2013 (FY 2013).

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