How is Antique Broking reading TCS' Dec results?

In an interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, Sandip Agarwal of Antique Stock Broking spoke on the IT Results.

Below is the verbatim transcript of the interview. Also watch the accompanying video. Q: How did you read the relative sense of the numbers of TCS and Infosys? A: TCS has clearly outperformed on all fronts. The volume growth is 5.7%, in spite of cross currency headwinds during the quarter. The margins have been maintained. The street was estimating a dip in the margins but they have been slightly up. We have had a very good set of numbers on all fronts. All the verticals have done well. The best thing is that they have maintained utilisation level at 83.8%. It is a stable level on a sequential basis which is very high and difficult to keep the utilisation level. Since, attrition rate has gone down on a quarterly basis, the utilisation has been maintained. With such operating metrics, they are able to retain or continue going forward and the margins will not dip. This is the first trigger that we have seen. So, the overall results and the margin levels look good. Q: For some people that is negative because they feel it is unsustainable to move at more than 80%. What is your price target and earnings target for TCS for FY12? A: We have a price target of Rs 1,288 and earnings per share (EPS) of Rs 56 for FY12. We have not changed our estimates. These are same as our old estimates. We believe that this kind of utilisation levels can be maintained in the future also. We spoke to the management yesterday and they have the same stand. If the attrition levels remain the same unless there is a major problem on the employee side, the utilisation levels could be maintained. They are adding 15,000 people in the next quarter, from which most of them will be freshers. So, that will be another margin lever for the company. Q: Wipro had a weak quarter last time; do you think they will put out a better show this time? A: We mentioned that for one-two more quarters, there could be some pain. After that Wipro will catch up. We are not very bullish in this quarter and would wait for one-two quarters before we expect good numbers.