Staff bonus pulls down TCS net by 27%,but co upbeat about FY16

Country's largest software exporter TCS today reported a 27 per cent dip in its March quarter net profit at Rs 3,858.2 crore, impacted by one-time Rs 2,628 crore employee bonus, but exuded confidence about surpassing the industry average in the current fiscal.
"As we look into future, I think we are extremely well placed ... Our deal wins, our order-book and the client sentiment look positive," TCS Managing Director and Chief Executive Natarajan Chandrasekaran told reporters here.
There was a 2.70 per cent impact on margins (Rs 676 crore) because of the "cross currency headwinds to the profit, which grew 12.4 per cent if we factor in the impact of the one-time outgo because of the bonus to the employees", he said, adding the pre-tax margins were at 27.2 per cent.

The Tata Group company, however, remains very upbeat about the next fiscal (2015-16) and will continue to outgrow the industry, he said.
Revenue for the quarter rose 12.4 per cent to Rs 24,219.8 crore, while for the full fiscal it rose 15.7 per cent to Rs 94,648 crore. The net profit for the full fiscal rose 13.5 per cent to Rs 19,648 crore.
Nasscom has estimated a revenue growth of 13-15 per cent for Indian IT industry in the current 2015-16 fiscal.

Describing the numbers as "slightly below expectations on the revenue front", Dipen Shah of Kotak Securities said he expects TCS to maintain margins in the stated 26-28 per cent band going ahead.

The company will be hiring 60,000 people at a gross level in 2015-16, which will include 35,000 offers made at campuses, its HR head Ajoy Mukherjee said. The overall number is a tad lower than the 67,000 gross additions in 2014-15.
The company's attrition accelerated to 14.9 per cent in 2014-15, which is among the highest in the recent years, and Mukherjee added it will be focusing to arrest the same.
The "involuntary attritions", which had got it bad press since December continue to be in the 1-2 per cent band, he said, stressing that there has not been any spike in the same.

Employees who have spent over a year at the company will receive a week's salary for every year spent at the company and the Rs 2,628 crore one-time bonus payout will come in April or May.