Tata Consultancy Services - Topped Q1 IT Company

[VelMurugan]

Tata Consultancy Services

Country's biggest software exporter, TCS, reported a growth rate of 7 per cent in its consolidated net profit to touch Rs 1291 crore in the first quarter ended June 30. The company which narrowly missed the forecasts saw a 24 per cent growth in revenue to touch Rs 6411 crore.

Analysts had estimated Rs 6500 crore. The company's revenue grew 6 per cent vis-a-vis its earlier quarter. The company which traditionally does not give guidance remained caution for the next quarter.

TCS added 35 new clients in the quarter, compared to 50 in the previous sequential quarter. It won 12 deals in the quarter, three of which were in the $75-100 million range.

Two of its top 10 clients that had postponed their engagements and impacted revenues in the last two quarters turned around this quarter, boosting the numbers.

Revenues from a large bank, which is among TCS' top clients, dropped because of the bank's restructuring. In addition, issues with two financial services clients that cropped up in the previous quarter continued into this quarter.

In terms of employee strength, by June-end, the total employee strength of TCS stood at 116,300, across 64 countries. The company hired 8,982 employees in the first quarter.

The company plans to hire approximately 30,000-35,000 employees in the current fiscal.

The total attrition rate across TCS in Q1 was 12.8 per cent.

Source : IndiaTimes