Higher other income, which doubled sequentially (over 300% year-on-year), and new deal wins helped Tata Consultancy Services' fourth quarter consolidated net profit rise 1.3 percent quarter-on-quarter (22 percent YoY) at Rs 3,597 crore.
Higher other income, which doubled sequentially (over 300% year-on-year), and new deal wins helped Tata Consultancy Services' fourth quarter consolidated net profit rise 1.3 percent quarter-on-quarter (22 percent from a year ago) to Rs 3,597 crore.
Consolidated revenue for the three-month period was at Rs 16,430 crore, up 2 percent over the previous quarter and 24 percent YoY.
The results were largely in-line with street expectations and N Chandrasekaran, the CEO of India's largest software services exporter, reiterated that FY2014 was looking a better year than FY2013. He is also confident the company could beat the 12-14 industry growth guidance forecast by NASSCOM.
In Jan-March It had revenue of USD 3.04 billion, the first time the company's revenue has exceed USD 3 billion in a quarter.
Analysts on average had expected TCS to report a net profit of Rs 3,504 crore on revenue of Rs 16,406 crore.
TCS' earnings in the quarter were boosted by high other income, which doubled sequentially to Rs 442 crore. The higher other income included foreign exchange gain of Rs 124 crore.
The company signed 52 clients in the quarter. Key deal wins included a large outsourcing deal to drive operational efficiency for a European telecom handset manufacturer, infrastructure support pact with a North American retailer, operations support services to one of USA's leading mortgage servicers and lenders and multi-million dollar IT transformation programme deal with a European post and parcels company, among others.
"We continue to see strong momentum...Deal closures are happening...We are positive on all sectors including financial services," Chandrasekaran told reporters in Mumbai.
Pricing is also expected to remain stable this year.
The company has plans to hire 45,000 employees in the current financial year.
TCS shares ended down 1.8 percent at Rs 1,456.65 on NSE on Wednesday. The results were announced after markets closed.