TCS Q1 net vaults nearly 27% to Rs5,058 crore

Tata Consultancy Services (TCS), India's biggest software services exporter, posted consolidated net profit of Rs5,058 crore ($840.5 million) for the April-June 2014-15 quarter - a 26.9 per cent increase compared to the previous year and a 4.5 per cent increase from the previous quarter.

Mumbai-based TCS had reported a net profit of Rs3,987 crore during the year-ago quarter.

Revenue for the quarter showed an year-on-year rise of 2.6 per cent and a quarter-on-quarter increase of 22.9 per cent at Rs22,111 crore.

TCS said business volume grew 5.7 per cent during the quarter, led by a growth in North America, Europe, India and the Asia-Pacific region.

TCS saw its dollar earnings grow at a 3-year high 5.5 per cent, with incremental revenues of $191 million, the highest in 15 quarters.

TCS also announced a special dividend of Rs40 per share on the occasion of the 10th anniversary of its IPO.

''Robust volumes and healthy growth across all industries and key markets helped TCS start the new financial year on a strong note as our broad-based business portfolio continues to deliver results. We have a strong demand pipeline in place and our customer-centric mindset, leadership in the 'Digital' space and strong execution capabilities will help us to sustain our momentum,'' chief executive officer and managing director N Chandrasekaran said commenting on the Q1 performance.

''On the occasion of the 10th anniversary of TCS' IPO, the board of directors has announced a special dividend of Rs40 per share.'' Chandrasekaran added.

Rajesh Gopinathan, chief financial officer, said TCS's financial discipline helped the company mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter.

During the quarter TCS saw growth across markets led by North America, Europe, India and Asia-Pacific as also across industry segments led by media and information services, life sciences, retail and telecom with all non-BFS verticals growing in excess of five per cent sequentially.

TCS, which counts Cisco and Hewlett-Packard among its customers, has increased profits at a faster pace than rivals Infosys Ltd and Wipro Ltd, which have both had internal management changes over the last two years.