TCS Q1 net rises 13% to Rs5,709 crore

Tata Consultancy Services (TCS), India's leading IT services, consulting and business solutions firm, has reported a 13-per cent increase in its net profit to Rs5,709 crore ($900 million) during April-June 2015, compared to the first quarter of the previous fiscal.

N Chandrasekaran (CEO & MD)Sequentially, the company's net profit was up 48 per cent compared to the last quarter of the previous fiscal (January-March 2015), TCS said in a statement.

TCS' quarterly revenue was up 16.1 per cent from a year earlier and 6 per cent higher compared to the previous quarter at Rs25,668 crore. Business volumes grew 4.8 per cent during the quarter, helped by growth in core markets, TCS said.

Operating income for the quarter stood at Rs6,748 crore, posting a year-on-year growth of 16.1 per cent and a 70.3 per cent growth compared to the previous fiscal.

TCS reported an operating margin of 26.3 per cent for the quarter. Total dividend per share stood at Rs5.50 while earnings per share stood at Rs29.15.

During the April-June 2015 quarter TCS added 20,302 associates, taking total employee strength to 324,935. Employee utilisation at (excluding trainees) works out to 86.3 per cent.

TCS also reported client additions in the $20 million plus, $50 million plus and $100 million plus bands during the quarter.

''Demand from our core markets like North America and greater traction for 'Digital' solutions in key verticals like Financial Services, Retail and Life Sciences has driven volumes and growth in Q1. Our significant investments in IP and platforms, digital capabilities and our execution track record gives us a firm foundation to capture growth in the current financial year,'' CEO and MD, N Chandrasekaran said.

''Given the strong pipeline and market adoption of digital across industries, we are investing to train over 100,000 professionals this year in all relevant technologies,'' Chandrasekaran added.

''Our disciplined approach to all aspect of operations have helped maintain operating margins within our stated range despite hedging volatility and the impact of our annual cycle of salary hikes and promotions. We continue to focus on optimizing our cash conversion ratios and investing in people and technologies ahead of our business needs,'' chief financial officer Rajesh Gopinathan said.

During Q1, TCS posted the incremental revenues of $136 million driven by strong growth across core markets led by North America, UK, Europe, MEA and Asia-Pacific. Growth among industry segments was led by retail, life sciences, BFSI and telecom asset-leveraged solutions led the growth among service lines followed by infrastructure, assurance and business process service (BPS).

TCS also launched `IgnioTM' - the world's first neural automation system for enterprises, during the first quarter of the current fiscal.

During the full financial year 2015-16 TCS plans to train 100,000 'digital' professionals.