TCS Q3 net profit up 50% to Rs 5,314 cr

TCS Q3 net profit up 50% to Rs 5,314 cr

Tata Consultancy Services (TCS) on Thursday reported consolidated net profit of Rs 5, 314 crore for the quarter ended December 31, 2013 as compared with Rs 3,551 crore in the corresponding quarter of the previous financial year, an increase of 49.6 per cent.

Revenues for the third quarter rose 32.5 per cent to Rs 21,294 crore, compared to Rs 16,070 crore a year earlier. On a sequential basis, revenues were up 1.5 per cent. While the volumes for Q3 were up 1.8 per cent, operating margins came in at 29.8 per cent. The realisations for the quarter were up 74 basis points. 

The company at its board meeting on Thursday declared a third interim dividend of Rs 4 per share. 

TCS CEO & Managing Director N Chandrasekaran said, “Strong international demand for our services and discipline in execution has helped TCS maintain its momentum and post robust growth in volumes as well as realisation. Our diversified market presence and services portfolio have helped us overcome seasonal weakness and soft demand in the Indian market.”

“Based on initial discussions with our customers we believe 2014 will be a stronger year for us than 2013, as customers execute their business plans in a relatively stable environment. With digital technologies rapidly changing the way an enterprise operates in multiple dimensions, our continuous investments position us well to help customers reimagine their business,” Chandrasekaran added.

Rajesh Gopinathan, CFO, said, “We have been able to maintain our profitability by operating in a disciplined manner while sustaining our investments in customer-facing initiatives globally. We have also been able to significantly increase our cash generation due to efficient working capital management.”

TCS also announced a hike in its hiring target for 2013-14 up by 5,000 to 55,000 from an earlier estimate of 50,000. It reported net employee addition of 5,463 people during the third quarter, its total headcount stood at 2.91 lakh people. 

Meanwhile, shares of TCS closed at Rs 2351.35, down 0.12 per cent on the BSE after hitting an intra-day high of Rs 2380 and a low of Rs 2321.10.

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