TCS Q3 net at 14.2% at Rs 6,083.39 cr

Tata Consultancy Services Ltd (TCS), country's largest software exporter, on Tuesday reported steady growth of 14.2 per cent in its consolidated net profit after taxes (PAT) at Rs 6,083.39 crore for the third quarter ended December 31, 2015, slightly affected due to Chennai floods as the company had earlier warned that the floods would hurt its growth and margins.

“The consolidated net profit of the IT services provider firm stood at Rs 5,327.55 crore during the same period a year ago,” said Tata Consultancy Services Ltd in a filing to the Bombay Stock Exchange on January 12, 2016.

Further, consolidated total income of TCS rose 11.6 per cent at Rs 28,058.19 crore during Q3 FY16, as compared to Rs 25,145.05 crore the during same quarter last fiscal.

Speaking on the performance, TCS, CEO & MD, N Chandrasekaran said, “All our industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods.”

“Our international business has grown smartly in CC terms with North America and Europe leading the way among major markets and Latin America among growth markets,” he added.

He further said that digital business continues to be the core focus for enterprise IT in 2016 as customers respond to competition in a global economy driven by real-time insights.

“With 13.7 per cent of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers,” he said.

It’s board has declared a third interim dividend of Rs 5.50 per equity share of Rs 1 each of the company, TCS said in a statement.

The Mumbai-based firm said there was a total gross addition of 22,118 people (net addition of 9,071 employees) taking the total employee strength to 3,44,691 on consolidated basis.

The utilisation rate (excluding trainees) was at 84.9 per cent while the attrition rate (LTM) fell to 15.9 per cent.

Commenting on the results, TCS, Human Resources, Executive VP and Global Head, Ajoy Mukherjee said, “Our efforts to increase employee retention is working with quarterly attrition rates falling in Q3. Our hiring continues to support strong business growth and we continue to invest in building digital skills, with over 70,000 TCSers undergoing training in new technologies this year.”

Following the earnings announcement, shares of TCS ended on Tuesday at Rs 2,324.05 apiece, down 1.65 per cent, from previous close on BSE.