TCS reports 11% rise in Q3 net profit
TCS ready to change business model in US Visa headwind. We are addressing Visa related issues proactively, CEO said
Transformation to digital is real, every company wants it. We have overcome some of the headwinds seen in the previous quarter, CEO added
No change outlook on margin band, CFO Rajesh Gopinathan said
Demand for new services, tech supportive of pricing, Gopinathan said.
Tata Consultancy Services on Thursday reported a net profit of Rs 6778 crore, up by 10.9%, during the quarter ended on December 31 as compared to as on December, 2015 quarter. As against the previous quarter in the current fiscal, the company registered a rise of 2.9% in the net profit.
The company's revenue climbed by 8.7% to Rs 29,735 crore on year-on-year basis and on quarter-on-quarter basis it rose by 1.5%.
The Operating Profit (EBITDA) stood at Rs 7733 crore, increasing by 6.3% yoy and 1.5% qoq. While operating profit margins (OPM) stood at 26% this Q3. The digital revenues stood at 16.8% this Q3, which was up by 30.2% yoy.
During Q3, growth was led by Energy and Utilities (up 5.8%), Hi-Tech (up 2.6%), BFSI (up 2.1%), manufacturing (up 2.1%) and retail (up 1.9%) in constant currency, said in a press release.
Commenting on the performance of the company, CEO and MD of N Chandrasekaran said, "The resillience of our business model and strength of our operating strategy has been brought to the fore by our performance in Q3, traditionally a quarter of weak demand.
"To support and sustain our Digital business that is growing at 30% on an annual basis, we continue to build new capabilities in Digital technologies, empower employees to enhance agility in the workplace and invest more to develop IP-based platforms and products."
The company in its release mentioned that from a geography perspective, emerging markets like Latin America and India clocked double digit growth of 12.5% and 10.3% sequentially respectively while North America grew 2.2% sequentially and UK grew 1.7% sequentially.
The company's total employees strength during the quarter was 3,78,497, a gross addition of 18,362 employees.
The shares of the company closed at Rs 2343, up 0.87% or Rs 20.25 on BSE.