OREANDA-NEWS. October 26, 2012. Tata Consultancy Services (TCS) trumped peers yet again, posting a 5.1% sequential jump in revenue for the quarter ended September.

That compares with 2.5% growth at Infosys and 3% at HCL.

Pricing environment is stable and TCS hopes to beat Nasscom’s industry growth guidance of 11-14% for the fiscal, said N Chandrasekaran, CEO and MD.

Dipen Shah, head of private client group research at Kotak Securities, said TCS remained optimistic on the macro front. “It is seeing increased spends in discretionary services, in contrast to the cautious comments by peers. This is likely a reflection of deeper client penetration, superior delivery and a broad presence across services. We maintain a positive bias over the medium term.”

The management indicated strong service revnues across verticals. BFSI contributed 42.8% to overall revenues.

Dollar revenues popped 4.6% sequentially to USD 2.85 billion, while net profit was 6.4% to USD 643 million. In rupee terms, the bottomline surged 7.1% to Rs 3,512 crore, according to IFRS.

There was a forex gain of Rs 92 crore against a forex loss of Rs 93 crore same time last year.

Volumes, which rose 5%, were driven by new service offerings and a repeat business growth of around 99%, Chandrasekaran said.

TCS snared 41 new clients and 11 large deals in the quarter. Utilisation rate averaged 81.6% for the quarter.

The company also announced a minor restructuring across four subsidiaries and said it will be merging network solutions company ‘e-Serve’ into the parent.

Chandrasekaran said there will be no impact on margins because of this. Operating income at Rs 4,179 crore grew 2.2% sequentially, led by an operating margin of 26.8%.

Earnings per share for the quarter stood at Rs 17.95. The results were announced after market hours. Attrition was the lowest in 10 quarters at 11.4%, Ajoy Mukherjee, vice-president and global HR head, said. TCS is on track to hire 25,000 campus recruits in 2013. Of this, 12,000 have already been given offer letters.

TCS also said Rajesh Gopinathan, vice-president, business finance, will take over from chief financial officer S Mahalingam on February 9, 2013.