TCS Q2 net profits logged tepid 6.1% growth to Rs.2301 crore year-on-year; on account of decreasing pricing power of the India’s largest IT outsourcing company despite increased IT spending to improve efficiency amid global slowdown.

However, the management sounded positive about its burgeoning order book and incremental spending by overseas clients to combat the macroeconomic troubles emanating in the developed economies.

TCS

TCS added 35 new clients, and closed 10 deals in over $100 million worth contracts, during Q2 FY 2011-12. Revenues for the quarter came in at Rs.11634 crore, up 25% from the year ago period. India’s largest software exporter witnessed a slight drop in attrition levels to 13.7% in July-September quarter.

TCS results were below market expectations on various parameters including key earnings performance, leading to TCS share price to drop by whopping 8% in the Mumbai market. TCS has posted stellar results for more than last 6-8 quarters; and had been narrowing its performance gap versus Infosys Technologies, which might again take a back seat with Q2 FY 2011-12 below-expected results.

(Visited 205 time, 1 visit today)

Leave a reply