Mumbai, July 19 () : TCS recorded a profit of Rs 3,796 crore, up by 5.5% in the quarter ending June. It exceeded the market estimates. The share is trading at Rs 19.40.
On the revenue side, TCS recorded Rs 17, 987 crore registering a 9.5 % increase and in dollar revenue, it recorded $3.16 million and registered 4.1%. The market expectation is that TCS would outdo Infosys revenue of $1.9 billion for the June quarter.
TCS MD N Chandrasekharan claimed that it has a good pipeline of orders from USA, UK and Europe. In contrast, Infosys could only say that they were optimistic. TCS hikes in wages was not felt since the rupee lost against the dollar. This helps attrition level to come to 10% and also that the number of engineering graduates were more than the demand.
TCS announced the financial results after the markets closed. The shares on the news jumped up. IGate, another IT company recorded 3% increase in profits. In view of this, TCS is expected to register 15% growth in this fiscal year. Even before the quarterly results, the stock rose to Rs 1,660 which was the first in 52 months.
Gartner, a study report on IT cautions that the coming quarters will record not more than 3% because of labour and economic conditions, political conditions in Europe and new immigration bill of US.
TCS however beats this report as in America, from where TCS gets a little over half its revenue, which was at six per cent, while Infosys was 4.9 per cent from the same region. TCS also reported good growth from Europe, while Infosys reported a decline of three per cent.
The TCS management said the business deal in the pipeline from Europe was healthy and expects the tempo to be continued from the region. TCS is the second largest IT spender in the world. During the June quarter, the company bagged 10 large clients, largely from the US. It also bagged two more $100-million clients apart from the existing ones which saw growth.