TCS Q4 FY2012 and FY2012 results - First Cut - Microsec Research

TCS reported 0.4% sequential growth in top line to Rs.13,259.3 Crores while its bottom line increased 3.3% q-o-q to Rs.2,894.9 Crores in Q4 FY2012. Among the top IT companies, who have came up with their results for the March 2012 Quarter until now, TCS is the only one to post sequential growth in sales. While Infosys reported a 1.9% sequential decline in top line, HCL Tech registered 0.6% decline in revenues. This factor further strengthens our belief on TCS as the top pick in the sector. In addition, the company's net profit growth outperformed Infosys during the quarter.

Growth in top line, during Q4 FY2012, was mainly driven by continued growth momentum in North America, UK, and Emerging markets - India, Asia Pacific, and MEA. In addition, TCS added 42 new clients during the quarter with win of six large deals across multiple verticals. The company's utilization rate at 80.6% and Attrition rate at 12.2% are also the best in the industry.

On the yearly performance, TCS reported 31.0% y-o-y growth in top line to Rs.48,893.8 Crores during FY2012. This increase was mainly fueled by a robust 23.05% volumes growth. With this, the company became the first one to reach $10 Bn revenue mark in the Indian IT space. Moreover, TCS reported 15% y-o-y jump in bottom line to Rs.10,413.5 Crores during the year.

In continuation of its initiatives of value unlocking, TCS announced special final dividends of Rs.8 each. Consequently, total dividend declared by the company stood at Rs.25 per share including the dividend announced now.

Source : Equity Bulls

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