* Revenues cross $4 billion in 9 months
* Q3 revenues at Rs 5,923 crore, up 22% Y-o-Y; up 5% Q-o-Q
* Q3 profit after tax at Rs 1,327 crore up 19% Y-o-Y; up 6% Q-0-Q
* EPS at Rs 13.56 in Q3
* 54 new clients added in Q3
* 7,522 employees joined the company in Q3
* Quarterly dividend of Rs 3 per share
Big deals across sectors like the recent $1.2 billion one with The Nielsen Company is helping India's largest IT services provider Tata Consultancy Services (TCS) to comfortably become an over $5 billion company by the end of the financial year 2007-08.
The company posted a consolidated net profit (Indian GAAP) of Rs 1,327 crore for the third quarter ended December 31, 2007 -- up 19% when compared with the figure for the corresponding quarter last financial year.
Its revenue figure of $1.5 billion (Rs 5,923 crore) was an increase of 22% year-on-year (YoY).
"Our diversified business model continues to sustain the growth momentum despite several external challenges. There is growth momentum across geographies with contributions from all business units," said chief executive officer and managing director S Ramadorai.
S Mahalingam, chief financial officer, noted that the company "continues to drive margins through rate and productivity efficiencies and keep a strong handle on costs."
TCS improved its operating margins despite a 2.3% appreciation in the rupee against the US dollar during the quarter under review. The company had about $3.1 billion outstanding in hedges at the end of Q3.
"We have a strong qualified pipeline across geographies and verticals to sustain our growth," said chief operating officer N Chandrasekaran. "Our investments in Latin America, India, APAC have given us pole position in these emerging markets, while our full services play and global network delivery model drives growth in established markets like USA, UK and Europe."
Despite external challenges, the banking and financial services vertical witnessed strong growth in Q3 with the revenue share increasing sequentially. The travel and hospitality as well as the energy and utility verticals also grew faster than the average company growth rate. Large IT outsourcing engagements are gaining strength in established and newer geographies like Asia Pacific, India, Middle East and Africa as well as Latin America.
On the hiring front, TCS has added over 28,000 employees in the current financial year, and has already made over 22,000 campus offers for the next year.
TCS is the largest IT employer in India with 108,229 employees at the end of Q3. It made a gross addition of 7,522 employees in Q3. The company continues to maintain the lowest attrition rate in the industry at 12.2%. Foreign nationals formed 8.3% of the total employee base and 28% were women. Around 49% of the employees have over three years of experience.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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