TCS posts 5.1% rise in net profit

India's largest software exporter Tata Consultancy Services (TCS) has posted a 5.1 per cent rise in net profit at Rs5,444 crore for the third quarter ended 31 December, driven by industries such as telecom, hi-tech and life sciences. The Mumbai-based company had posted a Rs5,179.7 crore during the same period a year ago.

Europe led growth, driven by the investments made in that market, while North America also grew during the quarter, the company said in a statement.

During the quarter under review, the IT major's revenue rose 15.1 per cent to Rs24,501 crore from Rs21,294 crore posted during the comparable quarter of last financial year.

''We have maintained our momentum in a traditionally weak quarter for the IT industry. In constant currency terms, we have seen significant growth in USA, Europe as well as emerging markets like Latin America and Middle-East Africa. Our diversified industry portfolio and presence across key markets have helped us overcome soft seasonal demand in some sectors,'' said TCS chief executive officer and managing director N Chandrasekaran.

''Based on our progress this quarter, we are well on our way to post industry-leading growth for FY15. In areas like digital, simplification and governance, we continue to partner closely with customers to help them prepare their businesses to succeed in an economy where the default is digital,'' he added.

The company added a total of 16,561 people (net addition at 4,868) taking the total employee strength to 318,625 employees on a consolidated basis. The utilisation rate (excluding trainees) was at 86.7 per cent and that including trainees was 82.1 per cent.

TCS' attrition rate stood at 13.4 per cent, it said.

''Sharp cross currency movements have impacted dollar revenues, but we continue to manage operations with discipline and rigour, while investing in people, capabilities and infrastructure on an ongoing basis,'' said TCS chief financial officer Rajesh Gopinathan.

Unaudited condensed consolidated statements of comprehensive income (In millions)

Three-month period ended
31 December 2013
Three-month period ended
30 September 2014
Three-month period ended
31 December 2014
Revenue
212,940
238,165
245,011
Cost of revenue
110,257
132,405
135,159
Gross margin
102,683
105,760
109,852
SG & A expenses
39,336
41,818
43,611
Operating income
63,347
63,942
66,241
Other income (expense), net
5,386
5,659
6,295
Income before income taxes
68,733
69,601
72,536
Income taxes
16,524
16,045
17,453
Income after income taxes
52,209
53,556
55,083
Minority interest
412
673
642
Net income
51,797
52,883
54,441
Earnings per share in
26.44
27.00
27.79