TCS - Q1FY13 result first cut - Microsec Research

Tata Consultancy Services Ltd (TCS) announced its Q1 FY2013 results on 12 July 2012. The company's top line came in line with our as well as Bloomberg Consensus estimates whereas its bottom line remained above estimates.

The company's top line increased robust 12.1% q-o-q to Rs.14,868 Crores while its bottom line expanded 14.6% sequentially to Rs.3,317.7 Crores in Q1 FY2013. With robust customer additions, high utilization levels, and low attrition, TCS outperformed its nearest peer INFY on all fundamental as well as financial parameters. This performance is commendable as unlike INFY, TCS absorbed wage hikes provided during the quarter. Despite wage hikes the company was able to report sequential improvement of 48 basis points (bps) in Net Profit margins vis-à-vis a decline reported by INFY. Furthermore, the company's management remains buoyant about the global demand environment. We expect TCS to continue outperform INFY in the upcoming quarters as well.

In addition, continuing with its value generating initiatives, TCS announced a dividend of Rs.3 per share for Q1 FY2013.

Source : Equity Bulls

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