The country's largest software services firm Tata Consultancy Services (TCS) on Thursday reported a 45 per cent jump in consolidated net profit at Rs 5,568 crore for the first quarter ended June 2014, driven by broad based growth across verticals and geographies. The Mumbai-based firm had posted a net profit of Rs 3,840 crore in the year-ago period, it said in a BSE filing.
Consolidated revenue rose 22.9 per cent to Rs 22,111 crore for the April-June quarter this fiscal from Rs 17,987 crore for the same quarter in the 2013-14 fiscal. The figures are in Indian GAAP.
Commenting on the performance, TCS CEO and Managing Director N Chandrasekaran said robust volumes and healthy growth across all industries and key markets helped TCS start the new fiscal on a strong note.
‘We have a strong demand pipeline in place and our customer centric mindset, leadership in the digital space and strong execution capabilities will help us sustain our momentum,’ he added. The company announced a special dividend of Rs 40 per share on the 10th anniversary of its initial public offering.
TCS' operating margin stood at Rs 5,935 crore in the first quarter, a growth of 22.5 per cent
year-on-year (y-o-y). It added 15,817 (gross) and 4,967 (net) employees during the said quarter, taking its total headcount to 3,05,431 as of 30 June, 2014.
The utilisation rate touched an ‘all-time high’ of 85.3 per cent excluding trainees, TCS said. ‘Our disciplined stance in operations helped us mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter,’ Tata Consultancy Services CFO Rajesh Gopinathan said.
In US dollars, TCS' net profit grew 20.5 per cent to $845 million in April-June quarter of 2014-15 fiscal from $701 million in the same quarter of 2013-14. The company's revenue rose 16.4 per cent to $3.69 billion in April-June quarter of 2014-15 fiscal against $3.17 billion in the same quarter of 2013-14.
During the first quarter, the company posted its 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 Kingdom, Europe all continued to grow, TCS said. Growth was seen across all industry segments led by media & information services, life sciences, retail, telecom with all non-BFS verticals growing in excess of five per cent sequentially, the company added.
TCS said its attrition rate (last 12 months) was seasonally higher at 12 per cent. ‘Our focus on productivity continues to yield results with utilisation rates at an all-time high of over 85 per cent. We have already started on-boarding the campus trainees this year with 2,500 joining in June,’ TCS EVP and Global Head (Human Resources) Ajoy Mukherjee said.
TCS's cash and cash equivalents stood at Rs 20,730 crore for the period ended 30 June, 2014.