10 key highlights of Tata Consultancy Services Q3 results

Tata Consultancy Services today reported a net profit of Rs 5,328 crore, up 1.6 percent quarter-on-quarter (Q-o-Q) in Q3. For the quarter that ended on 31 December 2014, the country’s largest IT firm reported an operating profit of Rs 6,586 crore with a growth rate of 3.9 percent year-on-year (Y-o-Y) and 3.7 percent Q-o-Q respectively. Following the results, the company’s board also announced a Rs 5 dividend per share to its shareholders.[caption id=“attachment_1973531” align=“alignleft” width=“380”]  TCS’ CEO and managing director N Chandrasekaran. Reuters[/caption] The firm’s Q3 balance-sheet was largely boosted by business from sectors like telecom, hi-tech and life sciences. “Europe led growth, driven by investments made in that market, while North America also grew during the quarter. Among emerging markets, Latin America and MEA registered strong growth. Among service lines, global consulting, asset leveraged solutions, infrastructure service and assurance services were the leaders,” the company said in a press release. TCS’ CEO and managing director N Chandrasekaran felt that the firm had maintained its momentum despite Q3 being a “traditionally weak quarter for the IT industry”. Following are 10 highlight of the Tata Consultancy Services results for Q3: • Other income was recorded at Rs1,503 crore versus Rs865.2 crore (Q-o-Q) • The target margin band remain unchanged at 26-28 percent • The company is well on course to post industry-leading growth in 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,” Chandrasekaran said. • The firm is hoping to see tremendous deal momentum for next year. • The IT major said in Q3 it added 16,561 employees to its rolls, taking the total headcount to 3,18,625. Speaking at a press conference, Chandrasekaran said that the company’s hiring rate was likely to exceed the target for FY15. The Q3 attrition rate for the firm stood at 13.4 percent. • The utilisation rate (excluding trainees) was at 86.7 percent and that including trainees was 82.1 percent. • The company had signed seven large deals across five sectors in Q3. • The retail business remained subdued during the October-December period. The energy sector also did not do well. • Chief financial officer Rajesh Gopinathan 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.” • As of 31 December 2014, the company had applied for 2,081 patents, including 121 applied for during Q3. Till date, the company has been granted 175 patents.