Mumbai : Country’s largest software exporter TCS posted a 13.2% jump in its September quarter net profit at Rs 5,244 crore and remained “bullish” about the next fiscal.
Tata Consultancy Services, which is the most valued company, reported a 13.5 per cent growth in revenue at Rs 23,816 crore. In the year-ago period, its net profit stood at Rs 4,653.9 crore. Unveiling the earnings figure, TCS also announced the merger of its subsidiary CMC with itself. The merger ratio is 1:1.26 or 79 TCS shares for 100 CMC shares. TCS had bought CMC from the government in the 1990s through a divestment process.
TCS revenue jumped 13.5 per cent to Rs 23,816 crore in the second quarter ended September 30 as per the Indian GAAP system of accounting. On a sequential basis, net profit was down by 5.8 per cent to Rs 5,244 crore, while revenue was up 7.7 per cent at Rs 23,816 crore.
“Driven by strong volumes and robust utilisation rates, this has been a quarter of steady, consistent performance. Our well-rounded showing has been highlighted by broad-based growth in our key markets, industries and services as we continued to deepen our engagement with customers,” TCS MD & CEO N Chandrasekaran said. On the broader numbers, Chandrasekaran, who recently got a five-year extension, said the company faced headwinds from select geographies and sectors like Latin America and from the insurance sector, while retail did not match expectations.
Apex software industry body Nasscom has pegged IT exports growth at 13-15 per cent in the current fiscal year, citing improving global economy. “Across the sectors, and across markets, we remain very positive. If at all, we are only increasing our investments both in sales and capability building. We have already hired 36,000 people (as against targeted 55,000 for FY15)…so, we remain bullish about next year,” he said.