Moneycontrol Bureau
TCS, India’s number one software exporter, reported a net profit of Rs 5,314 crore for the quarter ended December, up 13 percent sequentially, as the company maintained its robust operating margins.
Quarterly revenues at Rs 21,294 crore were marginally lower than analysts estimates, but up 1.5 percent sequentially and 32.5 percent year-on-year.
A CNBC-TV18 poll had estimated a net profit of Rs 5,179 crore on revenues of Rs 21,373 crore.
The company’s dollar revenues of USD 3.438 billion, were up 3 percent sequentially, and overall international revenues were up up 2.9 percent in constant currency terms.
TCS CEO Natarajan Chandrasekaran said that the coming fiscal was likely to be a much stronger one than the current one.
The company attributed strengths in the manufacturing, telecom and life sciences verticals as the key drivers of earnings.
Operating margins stood at 29.7 percent for the quarter, and the company said it would be able to maintain its margin in 27-29 percent range. The company said it invested 70 basis points of its operating margins during the quarter into sales.
The company added 5483 employees during the quarter, four USD 20 million clients and two USD 50 million clients.
It signed 8 large deals during the quarter, logged a 1.8 percent growth in volumes, and a 74 basis point-improvement in realization.
Revenues from the domestic business declined, while international business showed good growth.
Utilisation rate for the quarter, including training was 77.5 percent and excluding trainees was 84.3 percent. The attrition rate was 10.9 percent.
The company said the domestic market was likely to remain uncertain till June or September.
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