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Tata Consultancy Services posted a 49.2 per cent surge in its second quarter net profit at Rs 3,434.37 crore, a tad better than street expectations.
The growth, compared with Rs 2,301 crore in the year ago quarter, was aided by good performance across all markets.
The country’s largest software exporter also announced that Rajesh Gopinathan, who has been appointed as Deputy Chief Financial Officer, will take over as Chief Financial Officer when long-timer S. Mahalingam retires in February. The company also consolidated with itself subsidiaries Computational Research Laboratories, TCS e-Serve and Retail FullServe.
“There has been a good pick-up in discretionary spend, and engagements in social media, big data and cloud. It has been a good quarter for us,” TCS Chief Executive Officer and Managing Director N. Chandrasekaran said.
On a sequential basis, net profit grew 3.5 per cent from Rs 3,318 crore in June quarter. Revenues rose 5.1 per cent to Rs 15,620.75 crore from Rs 11,868.71 crore in June quarter.
The operating margins dipped to 26.7 per cent (27.4 per cent).
TCS recorded a forex gain of Rs 92 crore in the quarter against a loss of Rs 93 crore in the last quarter. It also recorded a volume of 5 per cent, driven by new service offerings.
TCS won 11 large deals and added 41 new clients taking the total number of active clients to 104 during the quarter, even as pricing remained stable.
On the outlook for the rest of the year, Chandrasekaran maintained the company would deliver better than industry body Nasscom’s estimates of 11-14 per cent growth.
On Friday, ahead of the results, TCS share price was down 1.14 per cent at Rs 1,290.30 on the BSE.
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