Tata Consultancy Services (TCS), the country’s largest IT firm, on Friday reported a consolidated net profit of Rs 9,624 crore during the July-September quarter, up 6.8% from the preceding quarter. The number was a tad below Street expectations.
Though the profit was driven by broad-based demand across all verticals, it was also aided by other income which grew by 54.1% on a quarter-on-quarter (q-o-q) basis.
Consolidated revenue during the period at Rs 46,867 crore was up 3.2% q-o-q, slightly below estimates. The company reported a margin expansion of 10 basis points at 25.60 against 25.52 bps in the preceding quarter.
“The strong and sustained demand environment is a once-in-a-decade opportunity to position ourselves as the preferred growth and transformation partner for our customers,” CEO and managing director Rajesh Gopinathan said.
The board also approved Gopinathan’s reappointment as the MD and CEO for the next five years.
“We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient. We believe this is the most sustainable pathway to create longer term value for all stakeholders,” Gopinathan said.
“Strong growth and disciplined execution helped the company overcome headwinds from currency and supply-side inflation and deliver expanded margins,” CFO Samir Seksaria said.
The company added five new clients in the $100 million plus category, taking the total to 54. There was addition of 17 new clients in the $50 million plus band where the total number of clients now stands at 114.
TCS added 19,690 employees during the quarter but its attrition went up to 11.9%, higher than the preceding quarters. However, it was still lowest in the industry.
The quarter saw all industry verticals post strong double-digit growth.