Country’s third largest IT company Tata Consultancy Service (TCS) has toy reported that “It is expecting a better results for the September quarter of 2017, with he higher dollar revenue growth over the previous four quarters and also to see an increase in customer”.
This also helped the company to achieve a marginal growth rate of 6.8% in the first half of FY18, compared to 6.6% during the first six months of the year 2016 and 6.2% in past fiscal year.
TCS also posted a growth of 3.2% sequentially for the September 2017 quarter of $ 4.739 million. The operating margin increased by 170 basis points to 25.1% and the lowest level in the previous quarter since March 2008 was 23.3%.
During the quarter the company also managed to add six new clients to each billing groups for $1 million and above, $5 million and above, $10 million and above, 20 million and above, 50 million and above and 100 million and above.
The attrition rate for employees decreased by 30 basis points to 11.3%. In addition, after reporting a layoff of 1,414 in the previous quarter, the number of 3,404 employees in the third quarter totaled 3,89,213.
While growth in the second quarter gained momentum, fixed-rate revenue increased 1.7%, slower than the reported growth rate. It reflects the constant stagnation in the demand scenario. Indian IT exporters are trying to move away from customers’ changing preferences, solutions centered around digital platforms and traditional cost-centered solutions.
The next two quarters are usually slow for the industry, due to the festive season in the December quarter and the re-budgeting of customers in the March quarter.
For this reason, medium-term movements may show pressure that the stock may report Friday’s swim movement as a better response than expected quarterly performance. With a closing price of 2,548.6 Rup on Thursday, the stock was trading at the price gain rate at the end of 19.