TCS Q3 net profit up 14.2% at Rs 6,083 cr on strong North America, European biz

Country’s largest software exporter TCS reported 14.2 percent jump in profit to Rs 6,083 crore for the third quarter of the current fiscal. [caption id=“attachment_2580966” align=“alignleft” width=“380”]  Reuters[/caption] The company had reported a net profit of Rs 5,328 crore in the October-December period of last fiscal. The operating profit was at Rs 7,276 crore in the reported quarter. Its revenues were up 11.7 percent to Rs 27,364 crore in the third quarter, 2015-16, from Rs 24,501 crore in the corresponding period of 2015-15. “All our industry segments have exhibited growth in a traditionally weak quarter, additionally accentuated by the impact of the Chennai floods,” TCS Managing Director and Chief Executive N Chandrasekaran said. “Our international business has grown smartly in constant currency terms with North America and Europe leading the way among major markets and Latin America among growth markets,” he said. He added that digital business continues to be the core focus for enterprise IT in 2016 as customers respond to competition in a global economy driven by real-time insights. “With 13.7 percent of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers,” he said. TCS said the growth was “holistic” with all industry segments showing sequential growth with Life Sciences and Healthcare, Manufacturing and Hi-Tech leading the way. The company declared a dividend of Rs 5.50 per share which has a face value of Re 1, and its earnings per share (EPS) stood at Rs 31.01. Europe and North America led the growth in major markets while Latin America and Asia Pacific led the growth markets. Among service lines, infrastructure services and BPS were the leaders, it said. The company said its employee addition stood at 22,118 (gross) and 9,071 employees (net) to take its overall headcount to 3,44,691 people. “Our efforts to increase employee retention is working with quarterly attrition rates falling in Q3,” TCS Executive vice president and Global Head (HR) Ajoy Mukherjee said. “Our hiring continues to support strong business growth and we continue to invest in building digital skills, with over 70,000 TCSers undergoing training in new technologies this year.” The company said the number of $100 million clients increased by 1 to 34 and $20 million was up by 2 to 173. Rajesh Gopinathan, Chief Financial Officer at TCS said the company has operated with rigour and discipline to deliver credible margin performance and generated excellent cash flows in a challenging quarter with significant cross currency and other headwinds. PTI