Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research’s quote on TCS Q4 result
Greyhound Research believes that with revenue growth of 1.1% in Q4, TCS holds a sturdy position in the market in terms of growth and competitive positioning. This growth in their revenue is surely accredited to their sharp focus on emerging technologies as well as emerging markets. The very fact that TCS is the only company which is openly talking about their revenues generated through Cloud is a positive sentiment for the company as well as the industry and showcases their strong foot hold in the space. However, we are not very sure about the performance of TCS iON and if it will be able to give a strong competition to companies like Oracle, SAP and Ramco.
The pay hikes offered by TCS (8%) were higher than Infosys (6%). We believe that this will help them to retain their current employees as well as attract new talent. TCS’s attrition rate has increased from 13.4% in Q3 to 14.9 % in Q4, which we believe is a marginal difference and as per industry standards. However, it is still low as compared to Infosys which had an attrition rate of 20.1% in last quarter. Despite low attrition rate, TCS has given better hike to its employees which clearly states the company’s better financial standing, performance and better focus on employees.
We believe that lesser focus on energy sector will help TCS to avoid turmoil’s due to the now volatile oil and gas industry.
We believe that TCS’s decision to give out one-time bonus to all employees to mark the 10th anniversary of the company’s initial public offering is a very positive step to acknowledge the contribution of the employees in the making of the company.
© Technuter.com News Service