TCS Q2 net up 44% at Rs 3,512 crore

TCS Q2 net up 44% at Rs 3,512 crore

Tata Consultancy Services (TCS) on Friday reported a 44 per cent surge in the net profit of Rs 3,512 crore for the quarter ended September 2012, beating D-Street expectations, as compared with Rs 2,439 crore in the similar quarter a year ago. A brokers’ poll conducted by a TV channel had estimated net profit of TCS at Rs 3,371 crore.

Dollar revenues of India’s largest software exporter jumped 4.6 per cent quarter-on-quarter (QoQ) to $2,853 million from $2,728 million in the June quarter, while consolidated sales in rupee terms grew 5 per cent sequentially at Rs 15,621 crore against Rs 14,869 crore in the June quarter.

Other income of TCS, including a forex gain of Rs 92 crore, jumped 76 per cent to Rs 328.3 crore during the quarter under review from Rs 186.3 crore during the comparable quarter last fiscal.

The only negative is a slight dip in EBIT (earnings before interest and tax) margins, which rose at 26.8 per cent against 27.5 per cent in the June quarter. However, TCS management had warned analysts earlier that higher growth in the APAC region, where margins are lower than average, may lead to overall dip in margins.

TCS Managing Director and CEO N Chandrasekaran attributed revenue mix as one of the reasons behind the decline, while maintaining that pricing has been stable too. “Our execution excellence is winning recognition and our service offerings remain relevant for customers,” he added.

The TCS chief said, “We are growing in multiple geographies... all emerging markets, mainly Latin America, Middle East, India... they have grown significantly and at different price points.”

The company also managed to beat estimates on the volume and pricing front. Volume growth was flat at 5 per cent against 5.3 per cent in the June quarter, while analysts had forecast revenue in the second quarter of current fiscal at Rs 15,555 crore. It was announced that Rajesh Gopinathan will be the CFO, when the current incumbent S Mahalingam retires on February 9, 2013.

Among other things, TCS said it has added 41 new clients and applied for 1,017 patents as of September 30, 2012 of which 103 applied for during the quarter.

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