TCS posts robust net profit for quarter, fiscal


Mumbai, April 16 (IANS): India's largest software exporter, Tata Consultancy Services, (TCS) Wednesday reported a record net profit of Rs.5,297 crore for the fourth quarter (January-March) of 2013-14, registering 52 percent year-on-year (YoY) growth and 2.3 percent sequentially, as per Indian accounting standards.

For the just-concluded fiscal (FY 2014), net profit increased 38 percent YoY to Rs.19,117 crore.

Similarly, revenue for quarter under review (Q4) increased to Rs.21,551 crore, up 32 percent YoY and 1.2 percent sequentially.

The revenue increased to Rs.81,809 crore, registering 30 percent YoY growth.

Under the International Financial Reporting Standard (IFRS), net income for Q4 increased to $861 million, which is 33 percent up YoY and 2.9 percent higher sequentially.

Net income grew 23 percent YoY to $3.1 billion.

Gross revenue for quarter under IFRS increased to $3.5 billion, up 15 percent YoY and 1.9 percent up sequentially and for fiscal to $13.4 billion, an increase of 16 percent YoY.

"We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained momentum, improved quality of growth, deepened relationship with customers and expanded presence in newer markets like Europe during the past 12 months," TCS chief executive N. Chandrasekaran said in a statement Wednesday.

With 29 percent operating margin and Rs.6,281 crore operating profit in Q4, the global software major had a sequential volume growth of 2.59 percent.

"Our strategic investments, including those in Digital Technologies, are providing a compelling value proposition and helping us anticipate and shape new market trends," Chandrasekaran asserted.

For FY 2014, operating margin increased to 29.1 percent, operating profit to Rs.23,808 crore and volume growth to 17.39 percent.

"We are upbeat that the next 12 months (2014-15 fiscal) will bring more opportunities for growth across industries and markets. As a global organisation, we remain focused on execution of our strategy and on energising our 300,464 employees to ensure they make a difference to customers, colleagues and community," Chandrasekaran added.

On the hiring front, though the company added 18,654 professionals in Q4, net addition was 9,751, as 17,593 exited during last three months, resulting in attrition rate going up to 11.3 percent during last 12 months.

On annualised basis, gross addition was 61,200 and net addition 24,268, as 36,932 people left the company in last 12 months.

The company also declared a total dividend of Rs.32 per share of Re.1 face value, including Rs.20 as final dividend.

"Our focus has been to stay disciplined in operations while supporting business growth across markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year. We are also investing to stay ahead of the curve," Chief Financial Officer Rajesh Gopinathan said in the statement.

  

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Title: TCS posts robust net profit for quarter, fiscal



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