OVERVIEW

Revenues up 24 percent compared to Q1 of FY08

profits up 6% Q-o-Q

profit after tax up 4% Q-o-Q

EPS @ rs 13.19

35 new clients added

8,982 employees joined the company

attrition at 12.8%(including BPO)

dividend @ 3 rs per share

Net sales in dollar term grew at a decent 1.4% compared to the 0.1% in the previous quarter

forex losses of Rs 59 crore on account of hedging

operating margin declined by 240 basis points due to forex losses.

DISCUSSION & ANALYSIS

( Thread originally started in orkut community TCS 2008 )

ME:OVER ALL THE RESULTS WERE ON THE EXPECTED LINES OF THE ANALYSTS

the international business grew by 7%

negative demand from the BFSI(banking and financial sector) predicted for the next quarter.this sector is the biggest contributor for the tcs revenues.

the forcast for the next quarter has been CAUTIOUSLY positive..:)

ATTITUDE:do u mean 2 say that banking projects will sour for the next quarter then it would be a great panic in the company and will effect the doj

HAREESH:This is one of theworst s/w companies which has nothing except the brand value…he market expectations and quarterly growth is very much poor as compared to any other top 5 companies…this has been the case with TCS from many years….within no time it wil definitely lose its top position

DHIMAN(reply to attitude): u have hit the nail on the head frnd..

i have the same suspicion…
whatever the crap is flying abt TCS’ superb HR policies after all its an IT co. and will be affected like all other cos, maybe slightly less but affected nontehless.

for us its just wait and watch

ME(reply to attitude):almost 50 percent of the tcs revenues come from BFSI.due to the ongoing recession and sub prime crisis the BFSI sector hav taken a knock and are in the process of cutting down their costs.this will surely effect the TCS revenue portfolio but these ppl are lookin into other under developed and developed economies to counter this situation…
Ramadorai in the pressmeet was quite confident about the next quarter results and he assured that the hiring process will be done at the same process and the job cuts are unlikely.
so i dont think there will be any effect on our DOJ’S…
till now DOJ’S have been given as scheduled..so no need to panic…:)
chill guys…
despite the weak dollar prices and heavy hedge fund losses….TCS has put up a decent show…

ME(reply to hareesh): bro,i think u were too harsh when u said that TCS is the worst software company…

the IT industry has been suffering from the past few quarters…but TCS wasn’t that bad…
when it comes to the quarterly results only infy was able to put up better results than TCS.

whn i say only infy u need to remember that companies like sathyam are dealing with revenues which are comparitivly low.so u cannot compare the growth of the companies such TCS with smaller companies in the same league.

it’s easy to jump from 50th position to 10th position.but the toughest part is climbing from the tenth position to the first and it intensifies as we move to the top.
some times luck,small glitches can push them up or pull them down.

the best thing about TCS is that they have put up the losses incurred in hedging onto the balance sheets of each quarter.many companies dont do that and try to coverup the losses inorder to prevent their stock frm plummeting.but TCS never did that.

a problem well defined is half soLved and i beleive that TCS was successful in defining the problem and will post better results in the subsequent quarters…:).moreover i dont think a 6% growth Q-O-Q isn’t that bad afterall..:)

BAJAJ(reply to hareesh): i am nt crtising u 4 ur remarks but i do believe dat u want 2 show d ppl that u know a lot bout market but actually u don.
Reasons:
1. U said TCS has just brand value…dat means u wanna say dat TCS is famous: for ur knowledge infosys, accenture and ibm are more famous dan tcs.
2. U said its d worst company in d world…i don trust ur qualification 2 say that but i do trust forbes and other surveys which say dat tcs is in top 10 innovator companies in asia.
3. You look stupid man and i never feel sorry but i am feeling sorry for the company u work for as market analyst

ME(reply to bajaj): well said…(reason 1 nd reason 2)

BAJAJ(reply to me): wat bout 3 man, dats ma favorite

guys keep posting ur views on this.i will keep editing this post.you can post your views either as comments or you can post in the original discussion thread.

follow this link for the above discussion thread.

http://www.orkut.co.in/CommMsgs.aspx?cmm=28313196&tid=5223556804700822281

cheers,

Ritz.

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