Country’s top software exporter Tata Consultancy Services on Wednesday announced 22.1 per cent jump in its net profit at Rs3,596.9 crore for the March quarter on the back of all-round business growth
The company’s net profit stood at Rs2,945.5 crore reported in the same period a year ago.
Revenue for the fourth quarter endeed March 31, 2013 grew by 23.9 per cent to Rs 16,430.1 crore as against Rs 13,259.3 crore in the year ago period, according to the IFRS reporting.
Announcing the robust numbers here this evening, TCS Managing Director and Chief Executive N Chandrasekaran said, “We have delivered a year of strong growth with all markets and industry segments growing in double digits.
“We remain confident that the new fiscal will bring greater opportunities as technology plays an increasing role in reimagining businesses globally,” he added.
The company as a policy does not offer guidance.
The company said its net profit margin stood at 21.9 per cent while operating margin rose to 26.5 per cent in the reporting quarter.
“TCS results were marginally better than our expectations. The 4.4 per cent volume growth was better than what we had thought and is the highlight of the quarter. The company has maintained a confident outlook for FY14 and is based on the demand trends and scale ups which the company is seeing,” said Dipen Shah, Head of Private Client Group Research, Kotak Securities while commenting on TCS result.
“TCS has reported an above industry growth with sustained margins. We believe that, aggressive demand generation initiatives and effective execution across existing and new services are allowing the company increase the wallet share within existing clients and garner new marquee accounts. We maintain our positive bias for the stock,” he added.
For the full fiscal, net profit increased by 30.9 per cent to Rs13,941.4 crore compared to Rs10,651.7 crore in the previous fiscal.
The total revenue for the year jumped 28.8 per cent at Rs62,989.5 crore from Rs48,893.8 crore last year.
For TCS, there was balanced growth across markets and industries during the financial year. North America grew by 27 per cent, while United Kingdom grew by 44 per cent and Europe grew by 21 per cent. Among growth markets, latin America grew by 40 per cent, Asia Pacific grew by 27 per cent, India by 16 per cent and Middle East Africa by 28 per cent. All industry verticals grew in double digits also during FY13.
TCS’ full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace - Infrastructure Services grew by 47 per cent and Business Process Outsourcing grew by 46 per cent while Assurance Services, Enterprise Solutions and Global Consulting grew by 33 per cent, 25 per cent and 52 per cent respectively.
TCS shares closed 1.73 per cent down at Rs1,459.20 apiece on the BSE.
Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO,infrastructure, engineering and assurance services.