TCS Q3 net up 18% at Rs 2,803 cr

The country's largest software services exporter Tata Consultancy Services (TCS) today reported an 18.26% jump in consolidated net profit to Rs 2,802.77 crore for the quarter ended December 31, 2011.

In the year-ago period, the company had recorded a net profit of Rs 2,301 crore, TCS said in a filing to the Bombay Stock Exchange (BSE).

The company's total income stood at Rs 13,203.99 crore in the reporting quarter, as against Rs 9,663.35 crore in the corresponding year-ago period, translating into a growth of 36.63%.

"Our customer-centric approach in the market and execution rigour on the ground enabled TCS to post a strong financial performance in this quarter. Growth has been broad-based, with all markets and all industries contributing substantially," TCS CEO and MD N Chandrasekaran said.

Among mature markets, Europe led the growth in TCS's business, with an 18.1% sequential jump in revenues, followed by the US (13.3%) and UK (9.5%).

Latin America business saw significant expansion, with an 18.6% surge in revenues on a sequential basis, followed by India (14.8%) and the Asia-Pacific region (15.7%).

"We continue to focus on managing our operations optimally in the face of increased external volatility. We have increased our operating margins significantly by taking benefits of the growth, exchange movements and by keeping a strong focus on cost management," TCS CFO S Mahalingam said.

The company added 18,907 (gross) and 11,981 (net) employees during the quarter, taking its total headcount to 2,26,751 employees as of December 31, 2011.

The rate of attrition fell to 12.8% during the quarter.

"Attrition continued to fall for the second quarter in a row to 12.8% as TCS remained the employer of choice in a dynamic market. We continue to hire in line with business demand trends," TCS Executive Vice-President and Global HR Head Ajoy Mukherjee said.