TCS has delivered revenue growth numbers that have beaten its peers Infosys and HCL Technologies (HCL) in the March quarter. But on the whole, measured on several other parameters, HCL seems to have recorded a more “all-round” performance among IT majors.

TCS reported a marginal increase (of 0.4 per cent) in revenues sequentially to Rs 13,259.30 crore, while net profit rose 3.3 per cent to Rs 2,894.90 crore.

The net profit growth is higher than Infosys', but lower than HCL's.

Key factors healthy

TCS recorded a 2.3 per cent increase in volumes (man hours billed) growth, which is lower than HCL's 2.9 per cent. Infosys had a decline in volumes.

Reflecting the volumes expansion is the utilisation rate, which was at 80.6 per cent, which again is in between HCL and Infosys.

HCL seems to be having the best momentum in terms of deal wins, especially of the larger variety, followed by TCS, with Infosys languishing .

In the March quarter, TCS added four clients in the $50 million category, but HCL had one in the $100 million bucket and one in the earlier mentioned size apart from four in the $30-40 million segment.

Large geographies grow

Revenues from North America and the UK, which collectively account for over 68 percent of TCS' revenues, have grown faster than the overall company rate by expanding 1.6 per cent each. In this aspect, TCS scores over both HCL and Infosys, both of whom had revenue declines from North America .

Though some large verticals grew for TCS, the biggest among them – BFSI, declined sequentially, which was the case with its peers as well. This raises concerns on customer spends in that segment.

The revenues from application development and maintenance services as well as the BPO offerings of the company grew, while most other services declined, indicating a tight rein on discretionary spending from customers.

> ven@thehindu.co.in

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