TCS reports net profit of Rs 6,083 cr in Dec quarter

Tata Consultancy Services (TCS) on Tuesday reported an increase in the net profit by 14.2 per cent at Rs 6,083 crore on sales of Rs 27,364 crore in the October-December quarter.

The country’s largest software exporter had reported a net profit of Rs 5,328 crore in the October-December period of last fiscal. The operating profit was at Rs 7,276 crore in the reported quarter.

The software major reported revenue in the third quarter in FY16 at Rs 27,364 crore, up 11.7 per cent, from Rs 24,501 crore in the corresponding period of 2014-15.

TCS CEO Natarajan Chandrasekaran speaking about the TCS Q3 results said that stricter US visa norms and Chennai floods had put pressure on the company’s revenues.

“Chennai floods resulted into a weaker quarter, putting pressure on the margins. All our industry segments have exhibited growth in a traditionally weak quarter,” Chandrasekaran said.

“Retail business has been flat this quarter. Latin America as done very well and we see more growth from the market going forward. Our international business has grown smartly in constant currency terms with North America and Europe leading the way among major markets,” he said.

He added that digital business continues to be the core focus for enterprise IT in 2016 as customers respond to competition in a global economy driven by real-time insights. “With 13.7 per cent of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers,” he said.

TCS said the growth was holistic with all industry segments showing sequential growth with Life Sciences and Healthcare, Manufacturing and Hi-Tech leading the way. The company declared a dividend of Rs 5.50 per share which has a face value of Re 1, and its earnings per share (EPS) stood at Rs 31.01.

[Source:- business today]