TCS reports 64.4% growth in Q4 net profit, beats estimates | business | Hindustan Times
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TCS reports 64.4% growth in Q4 net profit, beats estimates

business Updated: Apr 19, 2016 14:06 IST
Ramsurya Mamidenna

Logos of Tata Consultancy Services (TCS) are displayed at the venue of the annual general meeting of the software services provider in Mumbai.(Reuters File Photo)

TCS, India’s largest software exporter on Monday said its fiscal fourth quarter net profit grew 64.4% year-on-year, beating market expectations, driven by growth in its core businesses of banking and financial services and in retail and manufacturing sectors.

The Mumbai-based software major, which is also the largest contributor to the overall revenues of the $109 billion Tata Group, said its January-March net profit rose to Rs 6,341 crore, from Rs 3,858 crore in the year-ago quarter, while revenue in the same period rose to Rs 28,449 crore.

“Our core portfolio performed strongly in a seasonally weak fourth quarter driven by strong volumes led by growth in BFSI (banking and financial services), retail and manufacturing sectors,” said MD N Chandrasekaran.

“This gives us good momentum going into the new financial year. Our investments in building high-impact digital platforms are paying off, resulting in over $2.3 billion in digital revenues. We are building the right talent pool by training more than 120,000 TCSers in FY16 in over 400 new digital technologies to help our customers drive adoption of digital in their enterprise,” he added.

The TCS chief however did not elaborate on the recent decision by a US federal jury to slap a fine of $940 million on TCS and a subsidiary on charges of stealing confidential trade secrets owned by a US company. TCS had said earlier it would vigorously contest the verdict.

 The company, which is one of the largest employers, said the attrition rate for IT services was 14.7% while overall it stood at 15.5%. 

“FY16 saw an all-time high gross addition of 90,182 employees, with a net addition of 34,187 employees,” said Ajoy Mukherjee, executive vice president and global head for human resources. “In Q4, there was a total gross addition of 22,576 employees and net addition of 9,152,” he added.

The software company also completed its highest ever hiring of over 90,000 new employees globally during the year.

Shares of TCS ended Monday down marginally at Rs 2522.40 on the BSE after rising in the initial part of trading due to an upbeat expectation after rival Infosys, which had declared its earnings last week, issued a robust outlook for the software industry.