Meeting analysts expectations Tata Consultancy Services (TCS), India’s largest IT services, consulting and business solutions organisation, has reported 14.5 per cent growth in consolidated net profit for the second quarter ended September 30, 2015 at Rs.6,055 crore compared to Rs.5,288 crore in the same period last year.
During the quarter the company’s revenue increased 14.1 per cent to Rs.27,165 crore from Rs.23,816 crore in the same period last year. These numbers are under international financial reporting standards (IFRS).
Considering volume growth in business witnessed in the last two quarters, TCS has decided to increase the number of people to be hired this year.
As compared to earlier target of 60,000 new recruits, the company said it has increased the number to 75,000 this year.
During the quarter, the company witnessed volume growth of 4.9 per cent. The company has announced Rs.5.50 dividend per share.
Gross employee addition was 25,186 and with this the total headcount has gone up to 3.36 lakh. The manpower utilisation was 86 per cent excluding trainees.
“We have another very good quarter. We have witnessed broad-based growth. North America and the U.K (operations) have done exceedingly well. Service revenue is broad- based and our digital business has seen good traction,” said N. Chandrasekaran, Chief Executive Officer and Managing Director, TCS while addressing a press conference here.
“We have delivered accelerated growth in constant currency terms for the second quarter. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, retail and life sciences verticals with the U.K. and North America leading the markets,” said Mr. Chandrasekaran.
“We remain focused on partnering with clients in multiple business dimensions to help them strategise and execute their digital roadmaps. Given the growing market adoption of digital, we continue to take new IP-led products and platforms to market successfully as well as invest in training our talent,” Mr. Chandrasekaran added.
Core markets such as the U.K., North America and Europe grew along with emerging markets such as Latin America, India and MEA. Digital witnessed 13.3 per cent revenue growth as compared to 12.5 per cent and this represents a growth of 11 per cent on sequential term.
On its digital drive TCS top executives said the company has built and deployed a new learning platform to enable Digital training for one lakh employees in this financial year.
The company said its attrition levels are reducing.
“On a quarterly basis, our retention levels have improved this quarter with a net addition of over 10,000 employees in Q2. Our hiring continues to be strong with all time-high of over 25,000 employees joining us this quarter,” said Ajoy Mukherjee, Executive VP and Global Head, Human Resources, TCS.
