TCS Q1 net jumps 15.5% to Rs 3,831 cr; beats estimates
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Joining Infosys in reporting earnings that beat analyst estimates, Tata Consultancy Services (TCS) has posted a 15.5 per cent rise in the first-quarter profit aided by a strong revenue growth across markets led by the US.
Indicating that the $100-billion-plus IT industry is going strong, the net profit of India's largest software company rose to Rs 3,831 crore during the quarter ended June 2013 from Rs 3,318 crore in the same period of last year. On a sequential basis, the net profit increased by 5.9 per cent from Rs 3,616 crore in the quarter ended March 2013. Revenue, on the other hand, shot up by 21 per cent to Rs 17,987 crore for the quarter from Rs 14,869 crore in the previous quarter. Infosys, country's second-largest software services exporter, earlier posted a 3.7 per cent year-on-year increase in its first-quarter net profit, matching estimates.
Commenting on the performance, TCS managing director and CEO N Chandrasekaran said: "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter."
"Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth," he said. TCS shares declined 0.82 per cent to Rs 1,660.15 on the BSE ahead of the announcement of the results.
Meanwhile, dollar revenues jumped 16 per cent year-on-year to $3,160 million. On the other hand, Infosys had reported revenues of $1,991 million last week. Unlike Infosys, TCS does not put out a forward looking guidance, but expects to better industry chamber Nasscom's growth estimates of 12-14 per cent in 2013-14.