Backed by sharp growth in Europe and Asia- Pacific Countries and investments in digital technologies, Tata Consultancy Services (TCS) on Wednesday reported a 48.2 per cent jump in consolidated net profit. Country's one of the largest software services firm's net profit rose to Rs 5,357.6 crore for the quarter ended March 31 as against Rs 3,615.64 crore a year earlier.
On the revenue front also, TCS reported a jump of 31.2 per cent to Rs 21,551.09 crore from Rs 16,430.09 crore in the same quarter last financial year. Despite posting strong quarterly results, TCS's shares trading on Bombay Stock Exchange ended the session down at Rs 2,195 per share, a fall of 2.51 per cent. As per experts, stocks prices did not reflect the better- than expected results due to heavy profit booking from institutions.
Commenting on the results, TCS's Chief Executive Officer, N Chandrasekaran said, “We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in the newer markets of Europe during the past 12 months.”
The firm's strategic investments, including those in digital technologies, are providing a compelling value proposition as well as helping the company anticipate and shape new market trends successfully, he added. Sequentially, net profit was up 0.5 per cent from Rs 5,333.43 crore in the October-December quarter, while revenue rose 1.2 per cent from Rs 21,293.96 crore.
For 2013-14, net profit was up 37.69 per cent to Rs 19,163.8 crore and revenue grew 29.87 per cent to Rs 81,809 crore. TCS added a net 9,751 employees in the fourth quarter and a net 24,268 employees during the entire financial year to take its head count to 300,464.
“Europe led growth in major markets, while UK and North America continue to grow in line with the company average. All major industry verticals grew in double digits led by retail, manufacturing, life sciences & healthcare and BFSI during FY 2014,” TCS Chief Financial Officer Rajesh Gopinathan said.
There was holistic growth across markets and industries during the financial year, he added. The company's full-service capabilities continue to be leveraged by customers, with new service lines growing at a fast pace led by infrastructure services, assurance services, global consulting and enterprise solutions, Gopinathan said.
TCS signed nine large deals across verticals during the fourth quarter, the company said. In US dollar terms, revenue stood at $ 13.4 billion, up 16.2 per cent and 17.3 per cent in constant currency, year-on-year, while net profit rose 22.9 per cent to $ 3.1 billion.
TCS had liquid assets including cash and cash equivalents of Rs 1,468.8 crore in the fourth quarter. The company announced total dividend at Rs 32 per share, including Rs 20 proposed as final dividend for fiscal 2014. “We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets,” Chandrasekaran said.
Meanwhile the company said it will hire 55,000 employees this fiscal, including 25,000 freshers.
“We are planning to hire 55,000 this fiscal. We have already said that as far as campus hiring is concerned, it will be 25,000,” TCS Executive Vice-President and Global Human Resources Head Ajoy Mukherjee told reporters here while announcing a 48.2 per cent rise in net income in the last quarter of the past fiscal.