Mumbai and Bangalore: The two giants of Indian technology consulting, Tata Consultancy Services (TCS) and Infosys reported mixed fortunes today.
TCS saw first quarter revenues up 13 percent, but revenues grew 4.8 percent in the same quarter at Infosys, and the firm lowered its full year projections.
- First quarter revenues to June 30 were $ 2.73 billion, up 13.1 percent
- Net Income up 13.6 percent at $ 604 million
- Diversified strategy enables broad-based growth across markets and industries
- Gross Addition of 13,831 Employees
- High Utilisation rates maintained at 81.3%
- 29 New Clients added
TCS CEO and managing director, N Chandrasekaran said, "We have seen strong, secular growth across all our service lines and industry segments driven by robust volumes from key markets like North America, Europe and UK. We have also absorbed (the) impact of wage hikes and maintained our profitability in a volatile setting.
"Looking ahead, TCS continues to see good demand from global corporations as they successfully navigate an increasingly complex environment. Our investments in new technologies and platforms are bearing fruit with increasing market traction and we are confident of playing a pivotal role in our customers' future business evolution."
S. Mahalingam, CFO, said: "Growth in Q1 was very broad-based. Growth was seen across all industry segments led by Retail, Telecom and BFSI. There was balanced growth across IT and other service lines led by BPO, enterprise solutions & infrastructure services. Major markets grew smartly led by UK, USA and Europe grew alongside growth markets like Latin America."
- Revenues were up 4.8 p$1,752 million for the quarter ended June 30
- Net income after tax was $416 million, up was 8.3%
- 51 clients were added during the quarter
- Gross addition of 9,236 employees (net addition of 1,157)
- 151,151 employees on June 30
"Our focus on Infosys 3.0 and building tomorrow's enterprise coupled with disciplined execution will help us deliver high-quality growth, despite challenges seen in the global economic situation resulting in slower IT spends by large corporations," said S. D. Shibulal, CEO and managing director.
As of June 30, 2012, the firm was sitting on $3.7 billion of cash and cash equivalents.
Infosys lowered its expectations for the full year from the 8-10% guidance given earlier in the year; it says it now expects revenues to grow by 5% to at least $7.343bn.
Indian analysts took a dim view of Infosys' performance and its lowered expectations — and the firm's shares dropped 10 percent.