TCS looking to maintain margins at 24-25%

TCS has come out with its Q3 results. Its Q3 net profit was at Rs 1330.8 crore versus Rs 1247 crore, QoQ. Its revenue stood at Rs Rs 5924.1 crore versus 5639.8 crore, QoQ (US GAAP basis). Its Q3 EBIDTA was at Rs 1579 crore. The results were largely inline with expectations.
 
Speaking at the press conference, S Ramadorai, MD & CEO, TCS said the company is seeing strong growth in emerging markets. Financial services have risen above company estimates on a QoQ basis. TCS is on course to hire 32,500 staff in FY08.

The company has made 22,000 offers on campus for FY09. It is carefully monitoring US problems and is cautiously confident of the future. TCS is looking to maintain margins at about 24-25%.

TCS’ nine-month net profit is at USD 941 million. Net other income, on account of forex gains, is at Rs 66 crore. It has registered 0.53% price growth and 5.31% volume growth, added the management.

Margins have improved 1.25% on pricing productivity and SGA savings. There is a forex impact of 92 bps on margins and final Q3 margins are at 24.16%. Outstanding forex contracts are at USD 3.1 billion. US revenues have dropped to 49.5%, stated the management. UK and US each contributed one-third to revenues.

For complete presser, watch video…