 "TCS starts FY15 with a bang, Q1 net profit up 45%")
Tata Consultancy Services today posted a 45 percent year on year rise in net profit for the first quarter of the current fiscal at Rs 5,568 crore, against expectations of Rs 4713 crore.
The company’s operating margins also beat expectations at an impressive 26.8 percent. CNBC-TV18 had estimated the company to post margins of 25.7 percent.
TCS’s rupee revenue for the quarter was Rs 22,111 crore , up 2.6 percent QoQ and 22.9 percent YoY. The dollar revenue grew 5.5 percent quarter on quarter at $3694 million, the highest in 12 quarters.
During Q1, TCS posted the highest incremental revenue of $191 million in the last 15 quarters driven by holistic growth across markets led by North America. Asia-Pacific, India, United Kingdon, Europe all continued to grow, the company said in a statement.
Following the results, TCS CEO N Chandrasekaran said, “Robust volumes and healthy growth across all industries and key markets helped TCS start the new financial year on a strong note as our broad-based business portfolio continues to deliver results.”
The company has also announced a special dividend of Rs 40 per share.
TCS won two multi-year, multi-million dollar deals from North American global pharmaceutical & medical device company and global semiconductor company, respectively. It also won multi-million euro deal from a fashion apparel retailer in Europe.
Meanwhile, the boards of directors of the company and its wholly-owned subsidiary, WTI Advanced Technology (WTI) today approved the scheme of amalgamation of WTI with the company. WTI is a wholly-owned subsidiary of the company, hence no shares will be issued upon the scheme of amalgamation becoming effective, said the company.
Key highlights
- Earnings per share at Rs 28.42
- Gross addition of 15,817 employees and net additions of 4,967 employees
- Five new $50+ million clients added
- As of June 30, 2014, the company has applied for 1804 patents including 58 patents applied during the quarter. Till date the company has been granted 129 patents.
- Exceptional items consist of a write back of Rs 665 crore due to change in method of charging depreciation on assets as at April 1, 2014 and a charge of Rs 175 crore in depreciation due to change in useful life of assets as at April 1, 2014
- The utilisation rate (excluding traineeds) was at an all-time high of 85.3 percent and that including trainees was 79.8 percent.
- The attrition rate (LTM) was seasonally higher at 12.0 percent, including BPS.