TCS posts 5.1% rise in net profit
15 January 2015
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)