Performing a tad better than market expectations, Tata Consultancy Services (TCS) reported a 22.6 per cent surge in net profit at the end of March 2012.
On a year-on-year basis, net profit stood at Rs 10,413 crore, an increase from Rs 9,068 crore at the end of March 2011. On a sequential basis, net profit for the March quarter grew 1.6 per cent to Rs 2,894 crore against Rs 2,802 crore in December 2011.
It became the first Indian company to touch the $10-billion milestone in terms of revenue, with annual revenues higher by 31 per cent at Rs 48,894 crore ($10.17 billion) over last year.
The operating margin for the fourth quarter declined to 27.7 per cent from 29.24 per cent in the October-December quarter. “The appreciation of the currency had a direct impact on the revenue. The 71 bps reduction in margin was on account of the currency,” said Mr S. Mahalingam, CFO, TCS.
“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,” said Mr N. Chandrasekaran, CEO and Managing Director. “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,” he said
The country's largest software exporter witnessed a volume growth of 23 per cent. The infrastructure services, enterprise solutions and BPO service lines clocked revenues of more than $1 billion in 2011-12.
In the BFSI segment, TCS has signed three large deals. Growth in the segment has been flat in this segment, but it should grow, said the company. There has been growth in all its other verticals. TCS' North America business grew by 29.6 per cent, while Europe including UK business grew by 33.8 per cent. As far as pricing is concerned, it has been stable with an improvement of 1.3 per cent.
The company scrip was down by 2.77 per cent to close at Rs 1,059.25 on the BSE on Monday.