The Hindu Business Line : Sedate numbers from TCS

TCS has delivered a poor set of numbers for the March quarter. While revenues grew by a measly 2.9 per cent to Rs 6,098 crore, the net profits fell by 6.1 per cent to Rs 1,245 crore sequentially.

Utilisation at 79.1 per cent is up for the quarter, indicating volume driven growth.

The decline in net profits and sedate growth in revenues may be indicative of key IT pressure points at work.

In terms of key parameters such as service mix, geographic mix or vertical mix, the quarter has not seen any major alterations. North America (50.4 per cent) and the banking and financial services clients (43.8 per cent) continue to be top revenue contributors for TCS.

Attrition is up for two successive quarters and may be another cause for concern.

Even as the market takes cognizance of the positive results from Infosys and Satyam, a poor quarter for TCS may once again raise concerns on the macro-environment.

Both Infosys and Satyam have indicated that it may take one or two quarters for greater clarity on IT spends by clients. In an environment where billing rate increases may be difficult, it remains to be seen as to how TCS manages growth.

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