TCS Reports 16 Percent Jump in Quarterly Net Profit

Country’s largest software services firm Tata Consultancy Services (TCS) has reported a 16 percent surge in net profit to Rs. 6,084.66 crores for the quarter ended September 30.

The Mumbai-based firm had reported a profit of Rs. 5,244.28 crores in the corresponding period last fiscal, it said in a regulatory filing.

The company’s total income from operations for the quarter rose 14.06 percent to Rs. 27,165.48 crores as against Rs. 23,816.48 crores last year. The figures are in Indian GAAP.

However, according to the company statement, as per IFRS, the net profit for Q2 stood at Rs. 6,055.20 crores whereas revenues was Rs. 27,165.50 crores.

TCS CEO and MD N Chandrasekaran said: “We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, retail and life sciences verticals with the UK and North America leading the markets.”

The company said core markets like the UK, North America and Europe grew smartly along with emerging markets like Latin America, India and MEA.

TCS also announced a dividend of Rs. 5.50 per share. Its operating margin for the quarter stood at 27.1 percent.

The company said there was a total gross addition of 25,186 people (net addition of 10,685 employees) taking the total employee strength of 3,35,620 on consolidated basis.

The utilisation rate (excluding trainees) was at 86 percent while the attrition rate stood at 16.2 percent.

“On a quarterly basis, our retention levels have improved this quarter with a net addition of over 10,000 employees in Q2. Our hiring continues to be strong with all-time high of over 25,000 employees joining us this quarter,” said Ajoy Mukherjee Executive VP and Global Head Human Resources.

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