For the second successive quarter, TCS reported tepid revenue growth.
The company’s March quarter revenue fell 0.8 per cent sequentially (in dollar terms), while net profit rose 8.9 per cent. The profit growth does not take into account the one-time bonus to employees. The stock lost nearly 7 per cent over the week. Currency played a major part as the weak euro affected realisations.
Revenues from Continental Europe and the UK, together accounting for 27 per cent of the pie, fell 5.8 per cent and 2.1 per cent, respectively. The North American geography fell marginally.
Among verticals, the banking, financial services and insurance (BFSI) segment fell in line with the overall company’s rate, while telecom, energy and utilities and travel saw revenue fall 4-10 per cent.
During the quarter, TCS added four clients in the $100-million bucket and three each in the $50 million and $20 million categories. So, volumes and revenue could improve in the coming quarters.
TCS delivered 15 per cent dollar revenue growth in 2014-15, higher than the upper end of industry body Nasscom’s estimate for the year. The company has indicated that it would meet or exceed Nasscom’s estimate of 12-14 per cent for the industry in 2015-16.