TCS expects dip in margin in Q3 2013
India’s largest IT firm TCS, in a meeting with analysts, has indicated that it expects a slight dip in margin during third quarter of fiscal 2013, on account of lower working days and addition of freshers into the system.
In a note on Monday, Angel Broking analyst Ankita Somani wrote, “We believe TCS is likely to deliver a 3-3.5 per cent quarter-on-quarter volume growth in third quarter of fiscal 2013 as compared to 4.9 per cent in Q2 of the same fiscal because of lower working days and furloughs seen.”
The company expects hedge losses close to Rs 30-35 crore, based on the hedge positions taken and the premium that it would have charged by December 2012.
“TCS is on track to meet its full-year plan shaped in April 2012 and does not see any major project cancellations or change in customer decision making process and their budgets. The deal pipeline of the company continues to remain healthy and the overall pricing in the market is stable,” Somani added in her note.