Tata Consultancy Services Ltd. reported a rise in its third-quarter net profit, on an Indian GAAP, both on consolidated and stand-alone basis, backed by revenue growth, balance across service-lines, industries and geographies.
Consolidated Results
The Mumbai-based company posted a third-quarter consolidated net profit of Rs.3,549.62 crore or Rs.18.10 per share, higher by 27 percent than the Rs.2,802.77 crore or Rs.14.30 per share in the third-quarter of last year.
For the quarter, total income from "Operations" increased by 22 percent to Rs.16,069.93 crore from the Rs.13,203.99 crore for the same period last year.
Segment-wise incomes
During the quarter, income from "Banking, Financial Services and Insurance" rose by 21 percent to Rs.6,917.73 crore from the Rs.5,710.60 crore in the previous year, while that of "Manufacturing" touched Rs.1,361.19 crore, up by 32 percent from the Rs.1,031.29 crore in the corresponding quarter last year.
income from "Retail and Consumer Packaged Goods" was Rs.2,149.88 crore, up by 32 percent from the Rs.1,623.90 crore in the year-ago quarter, whereas income from "Telecom" grew by 16 percent to Rs.1,868.72 crore from the Rs.1,615.61 crore in the corresponding quarter last year. income from "Others" totaled Rs.3,772.41 crore, compared with Rs.3,222.59 crore in the prior-year quarter.
Among mature markets, Latin America showed double digit growth sequentially, followed by India. Among industries, growth was led by Banking, Financial Services and Insurance (BFSI), Energy & Utilities, Manufacturing & Retail and Distribution, the company said.
In terms of services, TCS' full services capabilities continue to be leveraged by customers with newer service lines like Enterprise Solutions, Infrastructure Services and Global Consulting driving growth.
At the end of Q3, the company's employee strength was 263,637 with a net addition of 9,561 employees. The company's attrition rate fell to 9.8 percent, it said.
For the nine-month period, TCS posted a consolidated net profit of Rs.10,301.67 crore, up by 37 percent from the Rs.7,518.56 crore for the comparable period last year. Total income from "Operations" grew by 31 percent to Rs.46,559.39 crore from the Rs.35,634.50 crore in the corresponding period a year ago.
Stand-alone Results
The company's third-quarter stand-alone net profit was Rs.3,217.11 crore or Rs.16.40 per share, compared with Rs.3,168.10 crore or Rs.16.17 per share in the year-ago quarter, an increase of two percent. Total income from "operations" stood at Rs.12,366.95 crore, compared with Rs.10,347.59 crore in the prior year quarter, reflecting a 20 percent growth.
For nine months, the company posted a stand-alone net profit of Rs.9,737.46 crore, up by 16 percent from the Rs.8,417.64 crore in the corresponding period last year. Total income from "Operations" increased by 28 percent to Rs.35,703.16 crore from the Rs.27,933.33 crore for the corresponding period a year ago.
The company's Board recommended a third interim dividend of Rs.3.00 per equity share of Re.1 each for the fiscal year 2013. It fixed January 24 as the Record Date for payment of the interim dividend and the same will be paid on February 7. Chief Executive Officer & Managing Director N. Chandrasekaran said, "We have had an excellent quarter of well rounded performance and have driven a higher quality of revenue and increased profitability through focus on productivity and innovation. We have good revenue growth, balance across service-lines, industries and geographies; our agile, customer-centric organizations is delivering an increasing number of larger and deeper client relationships."
He added, "We believe that clients are going to invest in making their operations 'digital-ready' in 2013 and drive business growth. TCS is well positioned to help our clients in this journey."
CFO and Executive Director S. Mahalingam commented, "The overall performance has been in line with what we had outlined at the beginning of the year. Our superior execution in this seasonally weak quarter has also delivered productivity gains and an expanded operating margin."
At the BSE, Tata Consultancy closed Monday's trading at Rs.1,334.30, up Rs.27.95 or 2.14 percent on a volume of 436,000 shares.
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