In the backdrop of sharp currency fluctuations and a traditionally weak quarter, Tata Consultancy Services (TCS) reported a five per cent growth in its net profit for the third quarter of 2014-15. TCS’ revenues rose 15.1 per cent to Rs.24,501 crore, while operating profit was up 4.6 per cent at Rs.6,624 crore with operating margin up 19 basis points at 27 per cent. The growth was driven by industries such as telecom, hi-tech and life sciences while geographically, Europe-led growth with North America and Latin America, Middle East and Africa also registering strong growth.
“Sharp cross currency movements have impacted dollar revenues, but we continue to manage operations with discipline and rigour while investing in people, capabilities and infrastructure on an ongoing basis,” Rajesh Gopinathan, CFO, TCS, said.
During the quarter, there was a total gross addition of 16,561 employeespeople (net addition of 4,868 employees) taking the total employee strength to 3,18,625 employees on a consolidated basis. Attrition was at 13.4 per cent.
“Based on our progress this quarter, we are well on our way to post industry-leading growth in 2014-15. In areas such as digital, simplification and governance, we continue to partner closely with customers to help them prepare their businesses to succeed in an economy where the default is digital,’’ N.Chandrasekaran, CEO and MD, said.
