Tata Consultancy Services (TCS), the technology sector's newest bellwether, is on track to meet its FY13 growth target, if the management commentary is anything to go by.
First, TCS is on track to grow faster than the industry's estimated 11-14 per cent growth (in constant currency). The second quarter has seen no major shift in demand or project cancellations, which were big concerns.
While the demand environment may not be challenged, the company is also not likely to repeat its first quarter performance. In the first quarter, the company clocked a 5.3 per cent volume growth, as the Friends' Life deal that it had won saw ramp-ups.
However, with the project stabilising, the volume growth sequentially is likely to be in the range of 4.5-4.8 per cent in the second quarter. Cross-currency fluctuations are expected to eat into the company's dollar revenues, which could be in the range of 4-4.5 per cent sequentially.
The management has conveyed to analysts that it does not see any major challenges in terms
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