TCS - Q4FY13 Results - First Cut - Microsec

TCS announced its consolidated Q4 FY2013 and FY2013 results on 17 April 2013. Both the company's top line and bottom line came in line with our as well as Bloomberg consensus estimates.

While TCS' top line increased 2.2% q-o-q to Rs. 16,430.1 Crores, its bottom line expanded 1.9% sequentially to Rs. 3,615.6 Crores. The growth in revenues was primarily led by a strong 4.4% sequential increase in business volumes. The company reported healthy revenue expansion across the businesses and geographies. However, this increase was partially offset by the slight appreciation of Rs. versus $. The appreciation of home currency also impacted the company's profitability with EBIDTA margins shrinking 90 bps q-o-q to 28.1% in Q4 FY2013. Nevertheless, on operational parameters, the company's Attrition levels remained at industry low levels of 10.9%. TCS also kept the employee utilization levels at healthy 82.0% during the quarter. Furthermore, in line with its initiatives to provide value to shareholders, it announced final dividend of Rs. 13 per share for FY2013.

TCS unexpectedly beat HCL in growth in business volumes during Q4 FY2013. With this, the company is likely to remain top performer for the quarter among the top tier IT companies as we expected to report another quarter of subdued volume growth. Furthermore, we continue to believe TCS and HCL to remain outperformer with in the sector. However, both these stocks are likely to be a market performer in the upcoming quarters.

Source : Equity Bulls

Keywords