TCS has become the first Indian IT company to cross the ten billion dollar milestone posting annual revenues of $10.17 billion in 2011-12
Mumbai: India’s largest software exporter TCS (Tata Consultancy Services) posted a healthy 21.9% rise in net profit for 2011-12 at Rs10,638.2 crore and said it is on track to outperform the industry revenue growth of 11%-14% set by industry body Nasscom for 2012-13, reports PTI.
The company also became the first Indian IT company to cross the ten billion dollar milestone posting annual revenues of $10.17 billion in 2011-12.
The IT major said its net profit for the fourth quarter of the last fiscal rose by 22.6% to Rs2,932.4 crore on the back of a 30.5% rise in revenues at Rs13,259.3 crore.
Analysts said TCS performance was particularly encouraging in a challenging environment. It follows bellwether Infosys’ rather poor show wherein it missed its own revenue guidance for the March quarter and gave a muted 8%-10% guidance that had dampened investor sentiment.
Unveiling the numbers, TCS CEO and MD N Chandrasekaran said: “Our order book is very healthy. We don’t give numbers; it continues to see improvement... Our intention is to remain ahead of the Nasscom target for 2013.”
Buoyed by good momentum, TCS said it will hire 50,000 people in FY 12-13 and will also raise wages for its existing employees in India by 8%.
In contrast, Infosys had said wages would be frozen till there was more clarity on the economic environment.
HCL Technologies, fourth in the tally, reported 29% increase in net profit, while Wipro will report its March-quarter earnings on 25 March 2012.
Mr Chandrasekaran said the company has carried its strong momentum through the fourth quarter to close out a year of strong growth.
“We have kept our focus on profitability and consolidated our market leadership. North America and UK delivered excellent growth while Europe grew by 40%. However, Indian market continued to be volatile,” he said.
With the customers’ IT budgets almost flat, there is expected to be further pressure on Indian software service vendors, who are facing stiff competition from global giants like IBM and Accenture.
“TCS is well prepared to achieve balanced growth across the industries and markets it operates in, given its holistic portfolio of services which are now achieving significant scale across markets,” Mr Chandrasekaran said.
Kotak Securities head of fundamental research Dipen Shah said TCS results were in line with estimates on revenue and profit front.
“The 3.3% volume growth was encouraging in a tough macro environment. Management is also pretty confident of growing above the Nasscom average growth rate for FY12-13,” Mr Shah added.
TCS posted revenues of Rs48,893.8 crore ($10.17 billion) in 2011-12, up 31% as compared to Rs37,324.5 crore in 2010-11.
“We have grown very well during 2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months,” TCS chief financial officer and executive director S Mahalingam said.
He added the company remains focussed on opportunities in the market. “So, while maintaining our cost discipline at an operational level, we continue to invest in capacity and capability as we prepare for growth ahead,” Mr Mahalingam said.
During the January-March quarter, the company made a net addition of 11,832 employees, taking its total headcount to over 2.38 lakh.
The company has recommended a final dividend and a special dividend of Rs8 each per equity share of Re1.
IRDA has increased premiums for automobile insurance with effect from 1 April 2012. Insurance companies have come up with a new trick of using only the engine cubic capacity. The smaller and cheaper cars and bikes are subsidising the bigger and costlier ones
Insurance regulator, Insurance Regulatory and Development Authority (IRDA) has increased premiums for automobile insurance with effect from 1 April 2012. We see all sorts of new calculations on the scribble sheet that often accompanies the proposal which is also found on the cover note as well as the policy. The net result is that in some cases you can anticipate an increase of almost 50% over what you paid last year for the same vehicle, especially if it is a smaller car or a two-wheeler.
Of course, another truth is that the value of your car or bike is also going to depreciate faster. So with a lower cover, the premium amount also comes down for an existing vehicle—though that is cold comfort in case anything does happen to your wheels. However, in an attempt to see that they continue to collect as much as they can from you without increasing the coverage, the insurance companies appear to have come up with a new trick.
Take a closer look at the way the compulsory Third Party Risk and insurance premium is now calculated. Here are the details, and in all cases, taxes and other surcharges extra at actuals:
< 1000 cc = Rs784.00
1000cc - 1500cc = Rs925.00
>1500cc = Rs2,853.00
Private two- wheelers:
< 75cc = Rs350.00
75cc - 150cc = Rs 357.00
150cc - 350cc = Rs355.00
>350cc = Rs 680.00
Is this fair? I discussed this with a very senior person in the insurance industry in India, who has been in the business for over three decades been working in the public sector and knows the subject. Here’s a quick re-cap:
# There appears to be no differential rate for private cars registered and used by private individuals and private cars registered and used by government, corporates and companies. The presence on road, distance covered and therefore potential for causing damage to other road users is so much higher in these two categories, and has not been provided for.
# Third Party risk is basis the damage your vehicle can cause. A more powerful vehicle shall cause more damage and the premium should be much higher—preferably in terms of a composite of horsepower generated, maximum all-up gross weight and value. Using only the engine cubic capacity alone is a flawed method.
# As a result of using only the engine cubic capacity, it is clear that the smaller and cheaper cars and bikes are subsidising the bigger and costlier ones. A typical < 1000cc car would cost around Rs3-Rs4 lakh while the price of a >1500cc car would range from Rs8-Rs10 lakh all the way up to Rs3-Rs5 crore. That huge Audi Q7 or Mercedes Benz E Class or BMW 5 series will cost only 4-5 times more to insure for Third Party insurance while costing 50 times or more—and let’s not even talk about the Rolls Royce or Bentley or Aston Martin which would cost 200 times more than the Tata Nano.
# Goods vehicles are categorised and charged as per their maximum gross vehicle weight, which is also not totally correct, but is a far better way than going only by cubic capacity. Likewise, cars, three-wheelers and bikes used for carrying passengers have another formula, which also brings in the number of passengers to be carried and therefore covered.
The best co-relation that this person from the insurance industry gave went something like this: An additional cost of Rs5 is levied on the pao-vade that people eat at Dadar for Rs10, so that the person eating a full meal at a 5-star hotel has to pay only Rs50 for the Rs2000 bill—and entry to the 5-star is permitted only to those who drive up in a car costing over Rs20 lakh.
(Veeresh Malik had a long career in the Merchant Navy, which he left in 1983. He has qualifications in ship-broking and chartering, loves to travel, and has been in print and electronic media for over two decades. After starting and selling a couple of companies, is now back to his first love—writing.)
Singhel has been the chief marketing officer of the company and will be taking over from Hemant Kaul, Bajaj Allianz said in a statement
Mumbai: Private insurer Bajaj Allianz General Insurance said it has appointed Tapan Singhel as managing director and CEO.
Mr Singhel has been the chief marketing officer (CMO) of the company and will be taking over from Hemant Kaul, who has been relocated to Singapore for an assignment at Allianz Asia Pacific, Bajaj Allianz said in a statement.
“We are confident that Mr Singhel, who has been with the company since its inception, will be able to sustain the company's success going forward,” Bajaj Allianz director and Bajaj Finserv managing director Sanjiv Bajaj said.