TCS Q2 PAT seen up 3.1% at Rs 3382.7cr
Tata Consultancy Services is to announce its second quarter results. According to the CNBC-TV18‘s estimates, the company‘s Q2FY13 USD revenues are seen up 4.2% at USD 2842 million versus USD 2728 million.
October 19, 2012 / 13:11 IST
Tata Consultancy Services is to announce its second quarter results. According to the CNBC-TV18’s estimates, the company’s Q2FY13 USD revenues are seen up 4.2% at USD 2842 million versus USD 2728 million.
Its rupee revenues are seen up 4.6% at Rs 15555 crore versus Rs 14868.7 crore.Its EBIT is seen up at Rs 4223 crore versus Rs 4088.9 crore. EBIT in percentage seen at 27.15% versus 27.5% The company’s PAT seen up 3.1% at Rs 3382.7 crore versus Rs 3280.5 crore.Q2 expectationsUSD Revenue at higher end of peers at 4-4.5%Q2 volume growth to be slower than the robust ~5.3% seen in Q1. (from mgmt meet). since 1Q included the impact from Friend’s Life acquisitionLast qtr, tcs vol surprised positively at 5.3%, but CC pricing dn 1.06%)Volume growth has been strong for HCL at 4.5%, Infosys at 3.8% this qtrMargins slightly lower due to(1) capacity building (2) Movement onsite due to new project start (3) APac/India growth, which comes in at lower margins.Management had already indicated that At constant currency, EBIT margins could come in a bit weaker than the ~27.5% seen in Q1May be minimal forex losses in 2QFY13Management takeaways in Sept about FY13 demand + Revenue + EBIT and vertical1) Reiterated their expectations to grow faster than the Nasscom’s FY13 sector estimate (11%-14%) on a constant currency basisNo deceleration in overall outlook for TCS since July.They have not witnessed any major project cancelations or delays in decision making and budget spends, and growth remains more front-end loaded.2) Broad-based growth across segments: TCS sees growth in all major geographies, service lines, verticals (except telecom). BFS growing at slower rate than overall growth. Retail, insurance & manufacturing growing faster.3) maintained their goal of 27% EBIT margins for FY13 (at Rs48/$). Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
