TCS' numbers for the September quarter are balanced across verticals, geographies and services. Client additions too continue to be healthy.

However, a decline in pricing and a dip in profits may be cause for disappointment, especially considering fact that wage hikes were completed in the June quarter itself.

During the period, the company saw its revenues grow by 7.7 per cent sequentially to Rs 11,633 crore, while net profit grew 2.5 per cent to Rs 2,439 crore. On both counts the growth figures are lower than Infosys. By hedging $1.7 billion of its expected current year revenues at under Rs 45 levels, the company may have paid the price for hedging more than what some of its peers do. In dollar terms, however, TCS' revenue growth was marginally higher at 4.7 per cent, as against the 4.5 per cent registered by Infosys.

TCS had higher volumes (person-months billed) growth of 6.2 percent compared to Infosys, but had a dip in realizations while its peer had a marginal increase.

Growth across segments

Some of TCS' key verticals such as BFSI, retail & distribution, and manufacturing have grown 8.6-12.2 per cent sequentially, while four other verticals grew at a faster pace. Telecom slid 1.7 per cent, though the company's recent deal wins could offset this.

Traditional applications division has grown in line with the company rate of about 4.4 per cent, but enterprise solutions, assurance services and infrastructure services have grown at a higher 9-12 per cent. Its key markets of North America, the UK and Europe, accounting for 79 per cent of revenues have grown 8.8-10.3 percent.

Among other positives is TCS managing to add two new clients in the $100 million plus category.

The key takeaway here as with Infosys's results seems to be that the trouble in developed economies has not really dented or eroded clients' IT spends. Relatively stable pricing, discretionary spending largely on track and no project pullbacks suggests a fairly stable outlook for the larger players.

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