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Result Reviews
TCS
TCS reported decent set of 4QFY2011 numbers. The company reported revenue of
US$2,244mn (vs. our expectation of US$2,252mn), up 4.7% qoq, on the back of modest
volume growth of 2.9% qoq, pricing uptick of 0.8% qoq and cross-currency benefit of
0.9%. In INR terms, revenue came in at `10,158cr (vs. our expectation of `10,211cr), up
5.7% qoq. INR revenue growth was higher than USD revenue growth due to INR
depreciation of 1.0% qoq in 4QFY2011. EBIT margin declined by 6bp to 28.0%, despite
strong gross addition of 19,324 employees, which led to a 200bp drop in utilisation level
(including trainees) to 75.1%. PAT came in at `2,402cr, with 3.1% qoq growth because of
maintained profitability and higher other income of `226cr against `182cr in 3QFY2011.
Management indicated its plans to hire 60,000 employees in FY2012, with lateral fresher
ratio of 50:50. Management has already made offers to 37,000 employees, with an
expected joining ratio of ~70%. The company remains our top pick among tier-I IT
companies because of its diversified portfolio on all fronts service wise, industry exposure
wise as well as geography wise. We maintain our Accumulate rating on the stock with a
target price of `1,349.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Reviews
TCS
TCS reported decent set of 4QFY2011 numbers. The company reported revenue of
US$2,244mn (vs. our expectation of US$2,252mn), up 4.7% qoq, on the back of modest
volume growth of 2.9% qoq, pricing uptick of 0.8% qoq and cross-currency benefit of
0.9%. In INR terms, revenue came in at `10,158cr (vs. our expectation of `10,211cr), up
5.7% qoq. INR revenue growth was higher than USD revenue growth due to INR
depreciation of 1.0% qoq in 4QFY2011. EBIT margin declined by 6bp to 28.0%, despite
strong gross addition of 19,324 employees, which led to a 200bp drop in utilisation level
(including trainees) to 75.1%. PAT came in at `2,402cr, with 3.1% qoq growth because of
maintained profitability and higher other income of `226cr against `182cr in 3QFY2011.
Management indicated its plans to hire 60,000 employees in FY2012, with lateral fresher
ratio of 50:50. Management has already made offers to 37,000 employees, with an
expected joining ratio of ~70%. The company remains our top pick among tier-I IT
companies because of its diversified portfolio on all fronts service wise, industry exposure
wise as well as geography wise. We maintain our Accumulate rating on the stock with a
target price of `1,349.
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