India’s largest software exporter Tata Consultancy Services (TCS) today reported a 35 per cent rise in consolidated net profit at Rs 4,633.33 crore for the July-September quarter of the current financial year.
TCS had posted a profit of Rs 3,434.37 crore the same period last year.
The total revenue grew 34.29 per cent to Rs 20,977.24 crore in the period under review from Rs 15,620.75 crore in the corresponding quarter last fiscal,Tata Consultancy Services (TCS) said in a filing to the BSE after close of market hours.
In dollar terms,profit grew by 16.4 per cent year-on-year to USD 748 million. Revenues jumped by 17 per cent to USD 3.34 billion.
BFSE (banking,financial services and insurance) and manufacturing verticals led the growth. All core geographies witnessed good demand,especially Europe,North America and the UK.
“We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they re-imagine their future in multiple dimensions,” TCS CEO and MD N Chandrasekaran said.
“We have demonstrated all-round strong growth across markets and industries highlighted by efficient and rigorous execution,” Chandrasekaran added.
The company added three new USD 100-million clients. It also saw 7,664 employees joining the company,taking the total headcount to 2,85,250.
The utilisation rate stood at 83.4 per cent while the attrition rate was stable at 10.9 per cent,it added.
“Strong volumes,currency tail winds and firm execution helped us post industry-leading operating margins in this quarter,” TCS CFO Rajesh Gopinathan said. Its operating margin stood at 30.1 per cent.
TCS shares rose to 52-week high of Rs 2,258 in anticipation of robust earnings,but ended the day flat at Rs 2,218 apiece.
Tata Consultancy Services second-quarter profit rises 34 percent
(Reuters) Tata Consultancy Services (TCS),India’s largest provider of information technology services,said quarterly profit rose 34 percent,beating analyst estimates,as the industry benefited from a record haul of new contracts.
TCS and rivals such as Infosys Ltd and International Business Machines Corp won $6 billion of contracts,according to Information Services Group – the most ever for a quarter – as companies spent more on IT in the United States and outsourced more to cut costs in continental Europe.
TCS,part of the salt-to-autos Tata conglomerate,said on Tuesday after the stock market close that consolidated net profit for the three months to Sept. 30 rose to 47.02 billion rupees ($760 mln) from 35.12 billion rupees in the same period a year earlier.
That compares with the 44.7 billion rupee average of 27 analyst estimates for Tata Consultancy Services.
Shares of TCS,India’s largest company by market value,which rose to a record on Monday on heightened expectations,ended up 0.1 percent at 2215.40 rupees on Tuesday.