TCS reports 10.74% rise in net profits

India's largest IT services company, Tata Consultancy Services on Tuesday reported a 10.74% year-on-year rise in net profit at Rs 8,131 crore for the first quarter ended June. In the corresponding period last year, its profit stood at Rs 7,362 crore.

The company also reported an uptick of 11.41% in revenue year-on-year, growing to Rs 38,172 crore from Rs 34,261 crore in the year-ago quarter last year.

The board of directors has declared an interim dividend of Rs 5 per equity share.

The digital revenue was 32.2% of the total revenues and 42.1% year-on-year. The company has retained 315,000 employees in digital technologies. During the quarter, it added 12,356 employees, the highest in five years.

Commenting on the first quarter performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said, " We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter."

He added, "We are benefiting significantly from enterprises investing in customer experience to differentiate themselves in a business 4.0 world. Our lean forward strategy is working well and our customers are benefiting from the innovation ecosystem. Customers appreciate our end-to-end capabilities, and our holistic approach to transforming customer journeys that enable rapid product innovation and speed to value."

Revenue growth was broad-based across verticals. Life Sciences & Healthcare led the pack, growing 18.1%. The other verticals - BFSI (+9.2%)' Retail & CPG (+7.9%), Communications & Media (+8.4%), Technology & Services (+7.8%) and Manufacturing (+5.5%) - all showed industry-leading growth rates, the company said.