TCS slips after Q4 earnings

TCS fell 1.28% to Rs 2,166.80 at 9:16 IST on BSE after consolidated net profit rose 2.3% to Rs 5297 crore on 1.2% growth in revenue to Rs 21551 crore in Q4 March 2014 over Q3 December 2013.

The result was announced after market hours on Wednesday, 16 April 2014. The results are as per International Financial Reporting Standards.

Meanwhile, the BSE Sensex was up 50.29 points, or 0.23%, to 22,327.52.

On BSE, so far 29,000 shares were traded in the counter, compared with an average volume of 1.24 lakh shares in the past one quarter.

The stock hit a high of Rs 2,230 and a low of Rs 2,169.90 so far during the day. The stock hit a record high of Rs 2,384.20 on 14 January 2014. The stock hit a 52-week low of Rs 1,364 on 30 April 2013.

The stock had outperformed the market over the past one month till 15 April 2014, rising 5.16% compared with the Sensex's 3.10% rise. The scrip had, however, underperformed the market in past one quarter, falling 4.36% as against Sensex's 5.62% rise.

The large-cap company has an equity capital of Rs 195.87 crore. Face value per share is Re 1.

Net profit jumped 37.5% to Rs 19117 crore on 29.9% growth in revenue to Rs 81809 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Commenting on the company's FY 2014 performance, N. Chandrasekaran, CEO and MD, TCS said, We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months. Our strategic investments including those in Digital Technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully.

Looking forward to financial year 2014-15, Mr Chandrasekaran added, We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets. As on organization, we remain focused on disciplined execution of our strategy as well as on energizing 300,000 TCSers to ensure they make a difference to their customers, their colleagues and the community.

Rajesh Gopinathan, CFO said, Our focus has been to stay disciplined in operations while supporting business growth across multiple markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year. We are continuously investing to stay ahead of the curve.

TCS said that there was holistic growth across markets and industries during the financial year. Europe led growth in major markets, while UK and North America continue to grow in line with the company average, the company said. All major industry verticals grew in double digits led by Retail, Manufacturing, Life Sciences & Healthcare and BFSI during FY14, the company said in a statement.

TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace led by Infrastructure Services, Assurance Services, Global Consulting and Enterprise Solutions, the company said in a statement.

TCS' board of directors at its meeting held on Wednesday, 16 April 2014, recommended a final dividend of Rs 20 per share for FY 2014.

TCS added 18,564 employees on gross basis and 9,751 employees on net basis in Q4 March 2014.

TCS is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services.

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