Buoyed by impressive show in the US and UK Tata Consultancy Services (TCS) on Tuesday has reported a net profit of Rs. 2,803 crore registering a growth of 18.2 percent for quarter 3. The company’s revenues at 13,204 crore rose 36.6 percent.
Last year the company registered a net profit of 2,370 crore for the same quarter while the revenues were Rs 9,663. TCS posted a forex loss of Rs 300 crore in Q3. “Currency has had a 2.82 per cent margin impact for Q3,” says S Mahalingam, chief financial officer at TCS. The company has hedged $1.3 billion for the next quarter for the current financial year at Rs 49 per US dollar.
The company said that the level of currency and market volatility has only risen in the past three months and it is adapting its strategies accordingly.
“Our customer-centric approach in the market and execution rigor on the ground enabled TCS to post a strong financial performance in this quarter. Growth has been broad-based with all markets and all industries contributing substantially.” He added: “While technology budgets are still being set for next fiscal, there is little doubt that technology is a key resource to help global businesses optimize their operations and fuel growth in the current economic climate. In this environment TCS is partnering with clients to achieve their objectives using our integrated portfolio of solution”, said TCS CEO and MD, N Chandrasekaran.
S. Mahalingam, Chief Financial Officer, said, “We continue to focus on managing our operations optimally in the face of increased external volatility. We have increased our operating margins significantly by taking the benefits of growth, exchange movements and by keeping a strong focus on cost management.
Growth in Q3 came across markets. Among mature markets, Europe led the growth story with 18.1% growth sequentially, followed by the US (13.3%) and UK (9.5%). In the growth markets, Latin America showed significant momentum with 18.6% growth sequentially followed by India (14.8%) and Asia-Pacific (15.7%).
All industry sectors have shown strong growth with all sectors growing at more than double digits sequentially except telecom. In terms of services, TCS’ full services capabilities continue to be leveraged by customers with our new service lines like Enterprise Solutions, Assurance and Infrastructure Services, Global Consulting growing at a fast, double-digit rate.