170 basis point y-o-y while Hero Moto’s gross margins were dented by 104 basis points and at Hindustan Zinc they fell 190 basis points. The software set remains optimistic; TCS MD & CEO N Chandrasekaran says the environment remains good and deal flow strong.
Nevertheless, what’s remarkable about the quality of the bottom line this time around is that there’s virtually no contribution from other income. Other income was higher by just 6% y-o-y whereas it rose more than 35% y-o-y in each of the three preceding quarters. Surprisingly, tax outflows are up just 10% y-o-y against the 13% y-o-y increase in the September quarter.