“All our industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods”, TCS chief executive N. Chandrasekaran said in a statement.
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A global leader in consulting, technology, outsourcing and next-generation services, will announce the results for its third quarter ended December 31, 2015 (Q3) on Thursday, January 14, 2016 around 8:45 a.m., Infosys said in a regulatory filing. Revenues moved up 11.68% on year-on-year basis (0.73% on sequential basis) to Rs 273.64 billion. Furloughs refer to the leaves given to employees by clients in the U.S. during the December holiday season.
“These companies know that with digital services you can cut down the number of people that need to work out of client locations and that visa costs do not pose a long-term threat”, said Srivastava, whose funds own Infosys and TCS shares. On Tuesday, it fell once more by 1.sixty five% on the BSE.
Angel Broking stated TCS’s revenue was decrease than anticipated however internet revenue was larger than anticipated. But this was previous to the announcement of the outcomes publish market closure. Chandrasekaran said its Chennai operations was back on track and its March quarter performance would not be impacted by the problems the city faced.
The group specialises in developing and supplying IT solutions and services and its primary sector is the banking, financial services, and insurance domain, which was attributable to 40.5% of revenues in the third quarter of FY 2015/16. “Our worldwide business has grown smartly in constant currency terms with North America and Europe leading the way among major markets and Latin America among growth markets”. We think the earnings miss and slowing growth will continue to weigh on TCS’s valuations. The UK business dipped 0.7%. Latin America proved to be a brilliant spot, rising 13.3% sequentially and 20.4% on a yr-on-yr foundation, albeit from a decrease base.
Chandrasekaran added that the deal pipeline looked good, saying the firm had recorded nine wins in the December quarter.
TCS is trading at 17.5 times FY17 P/E, a 10 per cent premium to Infosys, We see this gap bridging over the next twelve months as it suffers from deceleration, says ICICI Securities.
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Few positive about Q3 result is its hold on attrition level, falling to 15.9 percent from 16.2 percent (Q-o-Q) reversing several quarters of increases. Dell is trying to sell its Perot services business, which gets a significant portion of its revenue from healthcare.
