TCS posts robust growth in first quarter

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Mumbai, July 14 (IANS) Indian IT major Tata Consultancy Services (TCS) on Thursday reported robust consolidated annual growth of 9.9 per cent in net profit and 14.2 per cent in revenue for the first quarter (April-June) of 2016-17.

In a regulatory filing to BSE, the global software major said net profit increased to Rs.6,317 crore in the quarter under review from Rs.5,709 crore in like period year ago and consolidated to Rs.29,305 crore in Q1 from Rs.25,668 crore in same period year ago, as per the Indian accounting standard.

Under the International Financial Reporting Standard (IFRS), net income grew 4.7 per cent year-on-year to $940 million from $898 million year ago and revenue 8.1 per cent to $4.4 billion from $4.04 billion last year.

“Volume growth was 3.4 per cent, operating profit at Rs.7,347 crore was 8.9 per cent up, operating margin was 25.1 per cent and net margin 21.6 per cent of the revenue,” the IT firm said in the filing.

Sequentially, net profit was, however, flat (0.4 per cent) in rupee terms and 0.2 per cent in dollar terms, while revenue was up 3 per cent in rupee terms and 3.7 per cent in dollar terms from previous quarter of 2015-16.

“Strong execution and accelerating customer adoption of cloud, big data and analytics have driven broad-based growth across key markets and industries,” said TCS Chief Executive N. Chandrasekaran in a statement here.

Revenue from digital business at 15.9 per cent was driven by demand for agility.

The city-based company added four clients in $50-million and six clients in $20-million bands during the quarter under review.

“Our investments in platforms are gaining traction as customers look to boost business agility and enhance time-to-market advantage to gain a competitive edge,” Chandrasekaran said.

The outsourcing major has trained 165,000 in new digital technologies that are rooted in specific domains.

“Our disciplined approach to operations helped us counter strong headwinds in the form of annual salary hikes and promotions as well as global currency and market volatility through the quarter,” said Chief Financial Officer Rajesh Gopinathan.

“The rising employee retention rates for three consecutive quarters reflect our focus on engagement and investments made to build strong digital talent base,” Chandrasekaran added.

Adoption of cloud, big data and analytics is driving demand in manufacturing, energy and utilities and communications, while front-office transformations are helping growth in telecom and media sectors.

“Consumer businesses like retail, travel, transportation, hospitality and life sciences are also increasingly using analytics to create rich experiences for each customer and reimagine each customer’s journey,” Gopinathan said.

With net addition of 8,236 new employees, during the quarter, the company’s total headcount has gone up to 362,079 by June 30.

Attrition rate of the company and its subsidiaries, including business process services declined for third quarter to 13.6 per cent on annualised basis.

Women account for 33.8 per cent and number of nationalities has gone up to 131.

“Our attrition rate has fallen, underscoring our ability to engage with employees and provide long-term careers. The process of on-boarding this year’s campus trainees has also begun,” said human resources global head Ajoy Mukherjee.

–IANS

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