TCS net up 48.17% to Rs 5,358 cr, to recruit 55k staff

Tata Consultancy Services (TCS) on Wednesday reported 48.17 per cent increase in consolidated net profit to Rs 5,357.61 crore for the fourth quarter ended March 31, 2014 from Rs 3,615.64 crore during the corresponding quarter of the previous fiscal.

The country’s leading software exporter’s total income during the quarter under review grew to Rs 22,271.98 crore from Rs 16,872.54 crore for the quarter ended March 31, 2013.

Dollar revenues increased 1.9 per cent to $3.503 billion which TCS ascribed to performance driven by strong growth in Europe.

Earnings before interest and tax slipped 0.3 per cent quarter-on-quarter (QoQ) to Rs 6,314 crore, while margins declined 45 bps to 29.3 per cent.

“Our strategic investments, including those in digital technologies, are providing a compelling value proposition and helping us anticipate and shape new market trends successfully,” TCS Managing Director & CEO N Chandrasekaran said on Wednesday evening.

TCS said it signed nine large deals across verticals during the March quarter, saw 2.6 per cent growth in volumes, and managed to keep employee attrition rate at 11.3 per cent. The company added 9,751 employees during the quarter.
The company said its retention rate of employees is among the highest in the industry.
The company hired 61,200 employees in 2013-14 and is looking to add 55,000 employees this year.

Chandrasekaran said that TCS employees in India will get a 10 per cent hike on an average. Employees in developed markets would get 2-4 per cent raise, and those in emerging markets, 4-6 per cent.

He said billing rates were stable, and operating margins would be in the 26-28 per cent range this year.

For 2013-14, revenues grew 30 per cent to Rs 81,809 crore and net profit by 37.7 per cent to Rs 19,163.87 crore.

At its board meeting held on Wednesday, the company recommended final dividend of Rs 20 per equity share of Rs 1 each.
With this, the total dividend for the full year stands at Rs 32 per share.