TCS beats expectations; Q2 net up 34 percent
India's numero uno IT firm Tata Consultancy Services (TCS) Monday beat street expectations with 34 net profit year-on-year (YoY) growth to RS.4,702 crore in second quarter of fiscal 2013-14.
Sequentially, net profit rose 24 percent from Rs.3,796 crore in first quarter of this fiscal.
Consolidated revenue for the quarter under review (Q2) increased 34 percent YoY to Rs.20,977 crore and 17 percent from first quarter at Rs.17,987 crore, reflecting a sequential volume growth of 7.3 percent.
Under the International Financial Reporting Standard (IFRS), net income grew 16 percent YoY to USD 748 million and gross income 17 percent YoY to USD 3.34 billion.
Sequentially, net income grew 12 percent from USD 668 million and gross income 5.4 percent from USD 3.17 billion in first quarter.
"It has been another great quarter. We have demonstrated all-round strong growth across markets and industries, highlighted by efficient and rigorous execution," TCS chief executive N. Chandrasekaran said in a statement here.
With a whopping 52 percent YoY and 30 percent sequential operating profit at Rs.6,330 crore, operating margin was 30 percent.
"We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they re-imagine their future in multiple dimensions," Chandrasekaran said.
Though the global software major added 17,362 people during the quarter, net addition was 7,664, as 9,698 techies left by September, taking the total headcount to 285,250.
"Strong volumes, currency tailwinds and firm execution helped us post industry-leading operating margins in this quarter. Our ability to manage operations with a degree of discipline has helped maintain the tempo of investments needed to sustain growth as well as provide superior shareholder returns," said chief financial officer Rajesh Gopinathan.
Utilisation during the quarter excluding trainees was 83.4 percent and 75 percent including trainees.
"Growth was broad-based and was led by life sciences, media, energy and utilities and BFSI (banking and financial services and insurance). All core markets grew smartly with Europe, North America and Britain leading the pack," Gopinathan said.
The company added three more USD 100 million account clients in the quarter.
"Our ongoing investments in industry-led solutions and our efforts to provide insights and articulate the relevance of the digital revolution to business is helping us gain mindshare with customers and differentiate the TCS brand in the market," Chandrashekaran added.
(Posted on 15-10-2013)