Tata Consultancy Services, the country's largest IT services provider, reported a 3.28% increase in its quarter-on-quarter (q-o-q) net profit (consolidated Indian GAAP) to Rs 2,894.93 crore for the quarter ended March 31, 2012. In the previous quarter its net profit was Rs 2,802.77 crore.
The company's q-o-q revenue rose marginally at Rs 13,259 crore from Rs 13,204 crore.
On a year-on-year basis (y-o-y), TCS' net profit increased 10.37% as against Rs 2,622.93 crore reported in the January-March quarter of the last fiscal (2010-11). While its revenue, too, jumped over 30% as compared to Rs 10,157.49 crore posted in the same period last fiscal.
For the full year, TCS registered a strong volume growth of 23%.
N Chandrasekaran, CEO and MD said: "We have carried our strong momentum through the fourth quarter to close out a year of strong growth. We have kept our focus on profitability and consolidated our market leadership."
He added: "With our customer-centric approach, strong solution set and investments in game-changing technologies like mobility, big data and cloud, we remain well positioned to help our customers transform and drive growth in their businesses."
Looking ahead to financial year 2013, he said: “TCS is well prepared to achieve balanced growth across the industries and markets it operates in, given its holistic portfolio of services which are now achieving significant scale across markets.”
Attrition rate was lower at 12.2% on a LTM basis. The IT major added 19,156 (gross) and 11,832 (net) employees during the quarter, taking its total headcount to 2,38,583 employees as of March 31, 2012.
The company added 42 clients during the quarter.
For the year ended March 31, the company posted a consolidated net profit of Rs 10,413 crore, up 14.83% from Rs 9,068 crore over the year-ago period.
During the fiscal, revenue rose 30.99% to Rs 48,893.83 crore from Rs 37,324.51 crore in 2010-11.
The company's operating profit margin (OPM) was down 155 basis points (bps) sequentially at 27.7%.
S Mahalingam, Chief Financial Officer and Executive Director, said: “We have grown very well during 2011-12 and also been able to exit the year at the right margin levels, despite the market increase in volatility during the past 12 months.”
Within the income segment, banking, financial services and insurance (BFSI) contributed the largest share followed by retail & consumer packaged goods and telecom.
Its rival company Infosys reported a net profit of Rs 2,316 crore for the January-March quarter, up 27.4% year-on-year, but down 2.4% sequentially. Revenue for the three-month period was up 22.1% from a year ago at Rs 8,852 crore. Revenue q-o-q was down 4.8% in Jan-March, which is typically a muted quarter for IT exporters.
The board of directors recommended a final dividend of Rs 8 per equity share for the financial year ended March 31, 2012 and a special dividend of Rs 8 per equity share.
Shares of the company closed at Rs 1,059, down 2.77% from previous close on the BSE.
