TCS

A forex gain of Rs.240 crore which comes under ‘other income’ and an exceptional income of Rs.490 crore which was on account of changes in depreciation is what helped TCS post a very good set of numbers. The large cap IT company posted a consolidated net profit at Rs.5568 crore, up 45% (YoY) and sequentially it was up just 4%.  Revenue came in at Rs.22,111 crore, the highest in 12 quarters. EBITDA was at Rs.6367 crore, down 4% QoQ and YoY, it grew 24%.

In terms of geographical growth, North America rose 3% (QoQ), Latin America grew 1.4%, , UK was up 2.3%, Continental Europe was up 1.8%, India showed the best growth at 5.2%, followed by Asia Pacific at 4.5% though Middle East and Africa showed a degrowth of 2%.

In terms of segment, though BFSI remains its biggest revenue contributor, QoQ, it was flat, with the best growth coming in from Media and entertainment. During the quarter, the company added 4967 employees, taking the total employee tally to 305, 431. Attrition rate has risen from 11.3% in Q4 and 10.9% in Q3 to 12% in Q1FY15. Utilisation rate, including trainee was at 79.8%, up from 77.9% in Q4. Effective Q1, the company has hiked wages - average increment was 10% with high performers eligible for 14% and above. Consequently, wage bill has risen for the quarter came in at Rs.853 crore, up 12% QoQ. Based on this analysts had expected margins to come down by around 300-340 bps but operating margins came in at 26.3%, down 285 bps, which was much better than expectations. In Q4FY14, margin was at 29.15%. Apart from wage hike, rupee volatility pulled down margin by 73 bps.

Good news for shareholders – the company has declared an interim dividend of Rs.45/share, which also includes a special dividend of Rs.40/share on the occasion of 10th anniversary of TCS' IPO.