Tata Consultancy will retain lead over peers, predict analysts
“The company exuded confidence for FY14 growth due to a strong pipeline, ramp up in deal wins and positive client discussions on discretionary spending. We believe that this performance should support TCS’ lead over peers,” Barclays said in a report released on Tuesday.
At the analyst briefing, the IT firm’s CFO S Mahalingam and investor relations head Kedar Shirali noted that the company is on track to meet its full-year forecast for FY13 and does not see any major project cancellations or change in customers’ decision making and budgets. Angel Broking said TCS will post a 3-3.5% sequential volume growth during the October-December compared with 4.9% in Q2.
TCS pointed out that for the third-quarter ending December, performance is likely to be impacted by less number of working days and furloughs. “TCS maintained its earlier commentary of a slowdown in the second half of FY13 with the December quarter feeling the impact of some furloughs, hurricane Sandy and one less working day,” Barclays noted. Furloughs is a temporary unpaid leave of some employees due to special needs of a company. The third-quarter witnesses furloughs from hi-tech, manufacturing and telecom clients, but this time even banking and financial services saw a few instances of clients taking furloughs,
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