Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 13 points at the opening bell. Bajaj Auto, HDFC and Reliance Industries will declare their Q1 June 2013 results today, 19 July 2013. Market will react to Q1 June 2013 results of IT major TCS announced after trading hours on Thursday, 18 July 2013. Asian markets were mostly lower as US crude held near 16-month highs above $108 a barrel.
IT major TCS after trading hours on Thursday, 18 July 2013, said its consolidated net profit rose 5.9% to Rs 3831 crore on 9.5% growth in revenue to Rs 17987 crore in Q1 June 2013 over Q4 March 2013. Operating profit rose 12% to Rs 4847 crore in Q1 June 2013 over Q4 March 2013.
TCS said growth in Q1 June 2013 was seen across all industry segments, led by life sciences, retail, telecom and BFSI. There was balanced growth across IT and other service lines led by Assurance, EiS, Global Consulting and Asset Leveraged Solutions. Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific, TCS said in a statement. The company added two new $100 million clients in Q1 June 2013.
During the quarter, TCS closed the acquisition of Alti, one of the top 5 system integrators of SAP solutions in France with several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers.
TCS said it continued to hire employees to support business growth. There was a total gross addition of 10,611 people and net addition of 1,390 people in Q1 June 2013, taking the total employee strength of 277,586 on a consolidated basis. The utilization rate (excluding trainees) was at 82.7% and that including trainees was 72.5%. The attrition rate (LTM) dropped further sequentially to 10.52% including BPO. The attrition rate in IT was at 9.55%, while BPO attrition was higher at 15.77%.
Commenting on the Q1 performance, TCS Chief Executive Officer and Managing Director N Chandrasekaran said: "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter. Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth".
TCS Chief Financial Officer Rajesh Gopinathan said: "The current environment demands an agile operating model that can capture diverse growth opportunities. We continue to execute to plan and invest for growth, while maintaining stability in our margin profile".
Pharma companies including Ranbaxy Laboratories, Dr Reddy's Laboratories, Glenmark Pharmaceuticals and Cipla may decline on reports that they are likely to face penalties for allegedly selling an anti-asthma drug without prior price approval.
Key benchmark indices gained for second day in a row on Thursday, 18 July 2013 and reached 7-week closing high. The S&P BSE Sensex jumped 179.68 points or 0.9% to 20,128.41, its highest closing level since 30 May 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 178.30 crore on Thursday, 18 July 2013, as per provisional data from the stock exchanges.
Asian markets were mostly lower as US crude held near 16-month highs above $108 a barrel. Key benchmark indices in Singapore, South Korea, Japan and Taiwan were down 0.13% to 1.25%. Key benchmark indices in China and Hong Kong rose 0.24% to 0.43%. Indonesia's Jakarta Composite was unchanged.
US stocks rose on Thursday, lifting benchmark indexes to record highs, after jobless claims fell and earnings from corporations including UnitedHealth Group Inc. topped expectations.
Federal Reserve Chairman Ben Bernanke spent a second day on Capitol Hill on Thursday, discussing the outlook and Fed rate policy with the Senate Banking Committee. The Fed chief said that economic data since the last Fed rate-policy meeting have been mixed and it was way too early to make a judgment on when the central bank will slow down the pace of its asset purchases.
According to figures released by the Labor Department, jobless claims fell by 24,000 to 334,000 last week from a revised 358,000 the week before. The Federal Reserve Bank of Philadelphia's economic index this month rose to 19.8, the highest since March 2011, from 12.5 in June.
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