Wednesday, April 16, 2014

TCS high performers to get 14% salary hike; stock not seen reacting much

  
Tata Consultancy Services, the country’s largest software exporter, has reported 51.5 per cent rise (y-on-y) in net profit at Rs 5,297 crore for the fourth quarter ended March 2014.
It has reported revenues of Rs 21,551 crore, up 31.2 per cent year on year.
TCS consolidated profit for FY14 was up 37.69 per cent to Rs 19,163.87 crore while revenue rose 29.87 per cent to Rs 81,809 crore.
It has declared a final dividend of Rs 20/share.
FY15 to be better than FY14
"We gave delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months," said N. Chandrasekaran, CEO and MD, TCS, in a release to the exchanges.
He added that attrition remained under control. "It has been an exceptional year for us. We are exiting the year with great momentum."
Stating that FY15 will be better than FY14, Chandrasekaran said: "We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets."
"As we go into FY15, banking financial services will continue to lead followed by retail, lifeSciences and hi-tech."
Stating that growth will be led by larger verticals, Chandrasekaran said that among smaller verticals media and utilities will do well.
The company's key focus areas in FY15 will be digital, simplification and governance, the CEO said.
Employee additions, wage hike
The company's Executive Vice-President and head, global human resources, Ajoyendra Mukherjee, said that average increment will be 10 per cent. "High performers will get 14% and above."
Ajoyendra Mukherjee said that the company is looking at a gross addition of 55,000 employees that includes 25,000 campus hires.
TCS shares ended down 2.51 per cent or Rs 56.55 at Rs 2,195 on the BSE. Results were announced after close of market hours. 
NEW DELHI: Tata Consultancy ServicesBSE -2.51 % on Wednesday reported a profit after tax (PAT) of Rs 5,357 crore, which was in line with expectations.

Experts say although the results are what was expected the stock is unlikely to react much tomorrow (Thursday), and that there is a limited scope of significant rerating from current levels.

"The numbers are generally in line with our expectations. PAT is a bit ahead of our expectations. The stock is trading at 17 times FY16, s ..

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Those who have power to change things don't bother to;and those who bother don't have the power to do so .................but I think It is a very thin line that divides the two and I am walking on that.Well is pure human nature to think that "I am the best and my ideas unquestionable"...it is human EGO and sometimes it is very important for survival of the fittest and too much of it may attract trouble.Well here you decide where do I stand.I say what I feel.

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