16th Sept.2016:-
Post Brexit: Volatile Macroeconomic Conditions in Europe.
Lower Revenue Expected for IT Comapnies: Main Reasons are:-
Main Dependance are on U.S. and U.K.
Decline in consulting Business.
In India Finacle and other BFSI is showing declining trend.
High Foreign Currency Fluctuations,
Large Deals even though finalized, taking more time than expected to take off/Complete.
Immenient uncertainty has compelled Clients World over to delay IT Projects & reduce discretionary spendings.
US Federal Reserve keeping its Interest Rate at Record low
Hence earlier recommendation of 15th July 2016 is not continuing.
15th July2016:
Strong Recommendation for Continuing with TCS &Infosis.
TCS
rated world's most powerful brand in IT Services: Report
Scoring highly on a wide
variety of measures such as familiarity,
loyalty, staff satisfaction
and corporate reputation, Tata Consultancy
Services (TCS) emerged as
the IT services industry's most powerful brand
with a score of 78.3 points
earning it an AA+ rating has
been rated as the world's most powerful brand in Information Technology Services
by a leading global brand valuation firm, Brand Finance's 2016 annual report
evaluated thousands of the world's top brands to determine which are the most
powerful and the most valuable. "TCS' customer focus has been central to
its recent success, but a
closer
look at our data shows strong and improving scores for brand
investment
and staff satisfaction too," said David Haigh, CEO, Brand
Finance.
"It has emerged as a dominant force in the IT services industry and is the
strongest brand in the sector. Its brand power is indisputable,"Haigh
said.According to the report, TCS is also the fastest growing brand within its
industry over the last 6 years. The company's overall brand value has increased
from USD 2.34 billion in 2010 (when the first evaluation of the TCS brand was
conducted) to USD 9.4 billion in 2016. The efforts of our 344,000 employees
our
best brand ambassadors have helped our brand strength to be rated at
the
top of our industry," said N Chandrasekaran, CEO and Managing
Director
of TCS.
- Growth from
outsourcing becomes harder to generate or the erstwhile levels of growth
from outsourcing becomes harder to generate,
- In this volatile Market Choose TCS and HCL Tech are recommended.
* Second-largest software firm Infosys today
Aikido
services, bringing the power of intelligent systems,
automation and software to amplify the skills
and imaginations of our people,"
Share Price Rs 1,126.55
Particulars Period F.Y. Rs.Crores Revenue Net Profit
Liquid Assets 31.12.15 31526
30.09.15 32099
Quarter ending 31.12.15 US$240 Crore US$ 52.40 Crores
31.12.15 Rs.15902 Crore Rs.3465 Crores
Quarter Ending 30.09.15 Rs.15635 Crores Rs.3398 Crores
Quarter ending 31.12.14 Rs.13796Crores Rs.3250 Crores
Revenue
Current fiscal constant Currency Revenue guidance upwards to 12.8-13.2 per cent.
B.Analysis of3rd Quarter Results of TCS Mumbai-:
- Revenue rose just 0.5%
sequentially,if exchange rate fluctuations were
eliminated, and shrank 0.3% otherwise.
- The
third-quarter performance makes it
unlikely that the nation's top software exporter will beat
Nasscom's industry growth guidance of 12-14%for fiscal 2016. TCS
- IT spending to shrink as much as 5.5% in 2015.volatility, uncertainty and an
adverse currency.
- TCS'
revenue for the quarter rose 0.5% sequentially to $4.14 billion in constant
currency terms. On the same basis, and after factoring in the impact
of the floods, analysts on average had expected about 0.8% growth.
In rupee terms, TCS reported sequential revenue growth of 0.7% to Rs
27,364 crore. Profit after tax was flat at $926 million. In rupee terms,
the net profit rose 0.9% sequentially to Rs 6,109 crore. Operating
margin contracted 0.48 percentage point to 26.6%.
Digital, one of the bright spots
for the company in the recent past,also
slowed.
Revenue from India, which
contributes about 6% to the total,fell 6.7% sequentially. Revenue
from international markets grew 1.1% sequentially.
North America, which accounts for
53.5% of revenue, grew 1.4% sequentially, but in the UK, a
market that contributes about 16%, revenue fell 0.7%.
- Most of the UK
contraction has been attributed to the continuing weakness in TCS'
insurance platform, Diligenta. "still
need a quarter before Diligenta bottoms out. Business demand and order inflow
remains intact
- Rival Accenture, which recently
reported results for its fiscal first quarter ended November 30, posted
double-digital growth in its digitalbusiness.
C.Wipro
quarter ended December 31
In-line with Analyst Expectations.
"A pick-up in large deal closures
led by Global Infrastructure Services.
Customers want to simplify operations, optimize
their IT spend while investing in Digital to transform their business & are well-positioned ,"
*Net profit: *
Quarter ended
December 31, 2015, December 31, 2014
Rs. 2,234 crore Rs. 2192crore
Increase of around 2% year-on-year.
*Dividend:*
Interim dividend of Rs.5 per equity
share of par value Rs.2/- each
*Outlook for
March Quarter - Guidance:*
IT Services business to be in the range of $ 1,875
million to $1,912 million.
Expectation for Next Financial Year.
*IT Services
Segment: *
- IT services
segment Profit rose to Rs 2,480 crore ($375 million), while margins stand at
20.2%.
- IT services segment Non-GAAP constant currency revenue in dollar
terms grew 1.4% sequentially and grew 6.3% YoY.
- Headcount of 170,664
- Added 39
new customers during the quarter.
*Large deals:*
Signed a Definitive agreement to
acquire Viteos Group, a BPaaS provider for Alternative Investment
Management Industry.
Winning Large Deals globally
Wipro has entered into a multi-year global infrastructure
support engagement with one of the largest medical devices companies
in the world.
Standardization & Simplification:- Wipro will
standardize and simplify the customer's IT infrastructure across multiple
service lines and in over 90 countries.
"Acquisition:-During the
quarter, competitive differentiation BY Acquisition
of Two high-potential companies - Cellent and Viteos,"
"Business Continuity Plans:-Impact of Chennai floods minimized significantly by
strong execution of our robust Business Continuity Plans (BCP). The
additional expenses incurred in deploying BCP impacted
