Revenues For TCS Grew By 28.8% In FY13

TCS announced its Q4FY13 results. The tech giant, as we expected, has shown 2.2% sequential growth in revenues. At the same time, there has been pressure on margins in the quarter under review. The annual performance of the company is robust and is reflective of outperformance even during tough market conditions.

In Q4FY13, revenues of TCS grew by 2.2% to Rs 1643 crore as compared to the previous quarter. Its margins were pressured with the operating margin and net profit margin declining by 93 basis points and 8 basis points respectively. TCS witnessed a strong sequential volume growth of 4.4% in Q4FY13.

In FY13, TCS had volumes grow by 16.8% as compared to FY12. At the same time, revenues and net profit grew by 28.8% and 33.6% respectively.

Growth for TCS was broad based and balanced. In terms of geography, North America, UK and Europe grew by 44%, 27% and 21% respectively. At the same time, Latin America, Asia Pacific, India and the Middle East grew by 40%, 27%, 16% and 28% respectively.

In terms of services offered, infrastructure services, BPO and global consulting grew by 47%, 46% and 52% respectively. At the same time, revenues from assurance and enterprise solutions increased by 33% and 25% respectively.

Although there has been pressure on the margins of TCS in Q4FY13, growth in terms of volumes and revenues has been strong. We maintain our positive outlook on the prospects of TCS, relative to other IT stocks.