Buy On Dips

Tata Consultancy Services (TCS), a part of Tata group, is an information technology (IT) services, consulting and business solutions company. It offers a consulting-led, integrated portfolio of IT, business process outsourcing (BPO), infrastructure, and engineering services. The company derives 53.4 per cent of its revenue from North America, 15.5 per cent from the UK, and 2.2 per cent from the Middle East and Africa (MEA). At 43.5 per cent, the Banking, Financial Services and Insurance (BFSI) sector is the largest contributor to its revenue. Next come retail and distribution (12.1 per cent) and telecom (10.7 per cent). The contributions of other sectors such as manufacturing, life sciences and healthcare, travel and hospitality, energy and utilities are in single digit. Sectoral outlook World-wide spending on technology and related products and services is estimated to have crossed US $1.6 trillion in 2010, a growth of 4.0 per cent over 2009. Growth was driven by emerging verticals and emerging geographies in addition to USA. According to NASSCOM, spending on IT services is expected to increase from US $566 billion in 2009 to US $684 billion by 2014 at a compounded annual growth rate (CAGR) of 3.9 per cent. Offshoring of IT services is expected to grow from US $31.1 billion in 2009 to US $42.8 billion in 2014 at a CAGR of 6.6 per cent. Strengths Resilient performer. TCS’s performance in terms of both volume and dollar growth has remained strong. In Q1FY12 it posted a quarter-on-quarter (q-o-q) revenue growth of 7.5 per cent (in US$ terms), primarily owing to volume growth. The company reported another quarter of strong volume growth in Q2FY12. In the September quarter, it posted a q-o-q revenu