Mumbai, January 10 IT services firm Tata Consultancy Services reported 24.1 per cent growth in net profit at ₹8,105 crore for the third quarter ended December 31, compared with ₹6,531 crore in the same period last fiscal.

Revenues for the quarter grew 20.8 per cent year-on-year to ₹37,338 crore against ₹30,904 crore. On a constant currency basis, revenue grew 12.1 per cent.

TCS said it had a total contract value of $5.9 billion for the quarter, way above the $4.9 billion registered in the July-September quarter.

“We are wrapping up 2018 with a strong revenue growth of 12.1 per cent in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies,” TCS’ MD and CEO Rajesh Gopinathan said in a statement.

The company is looking at a strong deal momentum and does not expect any medium-term impact from macro economic headwinds, he added.

The digital share of TCS revenue has been on the rise and now accounts for 30.1 per cent of the total, up 52.7 per cent YoY. The UK and Europe registered the strongest YoY growth for the company at 25.1 per cent and 17.6 per cent respectively. Growth in its largest market, North America, stood at 8.2 per cent in constant currency terms.

CFO V Ramakrishnan said despite headwinds from rupee volatility, and the higher cost of doing business in some major markets, TCS’ operating margins have been resilient. Margins were up 40 basis points to 25.6 per cent, but below the company’s stated target of 26-28 per cent.

During Q3, TCS added 6,827 people (net), taking the employee strength to 4,17,929. Attrition rate was at 11.2 per cent on a last twelve months (LTM) basis.

TCS said hiring has been strong in the US. “There is a supply constraint in the US. We are hiring both contractual employees and direct hires to meet demand,” Gopinathan said. The company has declared a third interim dividend of ₹4 per equity share.

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