TCS’s net profit increases by 24 per cent in third quarter

The country’s largest software exporter TCS on Thursday reported 24.1 per cent growth in net profit at Rs 8,105 crore for the quarter ended December 2018. The company had posted a net profit of Rs 6,531 crore in the same period last fiscal as per Indian accounting norms. The Tata Group firm, which accounts for the lion’s share of the group’s overall profit, reported a revenue growth of 20.8 per cent at Rs 37,338 crore for the said quarter, up from Rs 30,904 crore a year earlier.

Revenue growth stood at 12.1 per cent on constant currency basis. “We are wrapping up 2018 with a strong revenue growth of 12.1 per cent in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies,” TCS Chief Executive Officer and Managing Director Rajesh Gopinathan said in a statement.

Also Read | Virat Kohli, No.1 in cricket is now the most valuable celebrity brand in India

The strong client metrics, industry leading growth in digital services, a very strong order book and deal pipeline are validations that customers recognise TCS’ differentiated capabilities, he added. Digital accounted for 30.1 per cent of the revenues, registering year-on-year growth of 52.7 per cent.

The company’s Chief Financial Officer V Ramakrishnan said despite headwinds from the rupee volatility against various currencies, and the higher cost of doing business in some major markets, TCS’ operating margins have been resilient.

“We remain focused on driving rigour in our operations, generating strong cash flows and steering profitability back to our preferred range, while continuing to invest strongly for future growth,” he added

Also Read | Fuel prices see marginal changes, check January 10 rates here

During the October-December 2018 quarter, TCS added 6,827 people (net), taking the overall employee strength to 4,17,929 employees. Attrition rate was at 11.2 per cent on last twelve months (LTM) basis.

The company has declared a third interim dividend of Rs 4 per equity share.