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Jul 18, 2013, 07.11 PM IST | Source: Moneycontrol.com

TCS Q1 net up 16% YoY to Rs 3831 cr; beats forecast

N Chandrasekaran, CEO, said volume growth was highest in the past seven quarters and growth was strong across all markets.

Moneycontrol Bureau

India's largest software services exporter Tata Consultancy Services ' first quarter consolidated net profit rose higher-than-expected 16 percent year-on-year (6 percent quarter-on-quarter) to Rs 3,831 crore, helped by new deal wins and a foreign exchange gain.

It was another stellar quarter, N Chandrasekaran, CEO said, adding momentum going ahead is strong.

The company's revenue growth was also better-than-expected 21 percent YoY (10 percent sequentially) at 17,987 crore in April-June.

Analysts on an average had expected TCS to report net profit of Rs 3,787 crore, on revenue of Rs 17,705 crore, according to a CNBC-TV18 poll.

Dollar revenues increased by 4.1 percent quarter-on-quarter to USD 3.17 billion in first quarter, the Mumbai-based company said on Thursday.

"Overall the environment is quite good from our industry point of view. We see a great momentum. We have delivered well rounded growth. US, UK, Europe have been spectacular this quarter. The growth has been across sectors. We see great momentum, not only in transformational deals but also in the digital space," Chandrasekaran said.

Last quarter, TCS' operating profit margin was at 26.9 percent, which too was higher than forecast of 26.25 percent.

Other income in the quarter was at Rs 258 crore, up 39 percent from a year ago (down 42 percent QoQ).

The IT firm added two new USD 100 million clients during the quarter.

The gross employee additions were 10,611 in April-June quarter. Its utilisation rate, excluding trainees, was at 82.7 percent in the quarter.

TCS' Bangalore-based rival Infosys, which has had to play a catch up game with its rivals in the last several quarters, had also surprised the street with a better-than-expected 4 percent year-on-year (1 percent sequential dip) in net profit at Rs 2,374 crore, and a revenue growth of 17 percent YoY (8 percent QoQ) to Rs 11,267 crore, last week.

TCS shares closed at Rs 1,660.40 on NSE, down 1.1 percent on Thursday. The stock had hit a new high of Rs 1,692.30, earlier in the session. The results were announced after market closed.

Also Read: Mindtree Q1 net profit jumps 52% YoY at Rs 135 cr

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