TCS net rises 51.5%; upbeat on FY15 prospects, says CEO

TCS shares closed 2.51 per cent down at Rs 2,195 ahead of the announcement of results on the BSE on Wednesday.

Subrata Roy

Beating market expectations, Tata Consultancy Services (TCS), India’s largest IT services exporter, on Wednesday posted a 51.5 per cent rise in net profit at Rs 5,297 crore during the quarter ended March 31, as against Rs 3,497 crore in the same period of last year.

The tech major, which reported a 2.3 per cent rise in net profit on a quarter-on-quarter (QoQ) basis, also remained upbeat about the next 12 months. Strengthening its global market position and growth momentum, TCS posted revenue of Rs 21,551 crore for the quarter ended March, a rise of 31.2 per cent from the same quarter in the previous year and 1.2 per cent increase on a QoQ basis.

“We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months,” said N Chandrasekaran, MD & CEO, TCS.

TCS shares closed 2.51 per cent down at Rs 2,195 ahead of the announcement of results on the BSE on Wednesday.

Looking forward to FY15, Chandrasekaran said: “We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets. As an organisation, we remain focused on disciplined execution of our strategy as well as on energising 3,00,000 TCSers to ensure they make a difference to their customers, their colleagues and the community.”

TCS has posted an annual net profit of Rs 19,117 crore, up 37.5 per cent on year-on-year (YoY) basis while its annual revenue shot up by 29.9 per cent to Rs 81,809 crore.

“Our strategic investments including those in digital technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully,” Chandrasekaran said.

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Rajesh Gopinathan, chief financial officer, said: “Our focus has been to stay disciplined in operations while supporting business growth across multiple markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year.”

TCS said there was holistic growth across markets and industries during the financial year. Europe led growth in major markets, while UK and North America continue to grow in line with the company average. All major industry verticals grew in double digits led by retail, manufacturing, life sciences & healthcare and BFSI during FY14.