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TCS jumps after good Q3 earnings

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Capital Market Mumbai
Last Updated : Apr 22 2013 | 2:44 PM IST

The company announced the results after trading hours on Monday, 14 January 2013.

Meanwhile, the BSE Sensex was up 29.57 points or 0.15% at 19,935.98.

On BSE, 58,000 shares were traded in the counter as against average daily volume of 95,892 shares in the past one quarter.

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The stock hit a high of Rs 1,400 and a low of Rs 1,390 so far during the day. The stock had hit a record high of Rs 1,438 on 14 September 2012. The stock had hit a 52-week low of Rs 1,046.55 on 23 April 2012.

The stock had outperformed the market over the past one month till 14 January 2013, surging 7.52% compared with the Sensex's 3.05% rise. The scrip, however, underperformed the market in past one quarter, rising 2.78% as against Sensex's 6.59% surge.

The large-cap IT firm has equity capital of Rs 195.72 crore. Face value per share is Re 1.

TCS' operating income rose 4.8% to Rs 4381 crore in Q3 December 2012 over Q2 September 2012.

Net profit rose 1.4% to $652 million on 3.3% growth in revenue to $2.948 billion in Q3 December 2012 over Q2 September 2012. Operating income rose 5.3% to $804 million in Q3 December 2012 over Q2 September 2012.

TCS said in a post result statement that growth in Q3 December 2012 was broad-based. Among mature markets, USA and UK led the growth story, the company said. Amongst growth markets, Latin America showed double digit growth sequentially, followed by India. Amongst industries, growth was led by Banking, Financial Services and Insurance (BFSI), Energy & Utilities, Manufacturing & Retail & Distribution. In terms of services, TCS' full services capabilities continue to be leveraged by customers with newer service lines like Enterprise Solutions, Infrastructure Services and Global Consulting driving growth, TCS said. Asset Leveraged Solutions and Engineering and Industrial Services also showed higher growth, TCS said.

Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "We have had an excellent quarter of well rounded performance and have driven a higher quality of revenue and increased profitability through focus on productivity and innovation. We had good revenue growth, balanced across service-lines, industries and geographies. Our agile, customer-centric organization is delivering an increasing number of larger and deeper client relationships. We believe that clients are going to invest in making their operations digital-ready in 2013 and drive business growth. TCS is well positioned to help our clients in this journey".

S. Mahalingam, Chief Financial Officer and Executive Director, said: "The overall performance has been in line with what we had outlined at the beginning of the year. Our superior execution in this seasonally weak quarter has delivered productivity gains and an expanded operating margin. Our business model of delivering growth with the desired profitability requires us to invest in the front-end and in new capabilities and we will continue to make those investments".

As of 31 December 2012, the company has applied for 1,088 patents including 71 applied for in Q3 December 2012. Till date, the company has been granted 76 patents.

Ajoy Mukherjee, Executive Vice President and Head, Global Human Resources, TCS said that the company has hired almost 50,000 professionals in the first three quarters of this financial year to support business growth and that the company continues to forecast a healthy growth in the workforce numbers going forward.

TCS is an IT services, consulting and business solutions organization. It offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

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First Published: Jan 15 2013 | 11:32 PM IST

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