TCS net up 13.5 percent for fiscal 2015

By Sarkaritel April 17, 2015 10:45

TCS net up 13.5 percent for fiscal 2015

Mumbai, April 17  Tata Consultancy Services (TCS) posted net profit of Rs.21,696 crore for the just-concluded fiscal 2014-15, registering a 13.5 percent year-on-year (YoY) growth as per the Indian accounting standards.

In a regulatory filing to the stock exchanges on Thursday, the IT bellwether said revenue for the fiscal under review (FY 2015) increased 15.7 percent YoY to Rs.94,648 crore under the Indian financial reporting standards.

Under the International Financial Reporting Standards (IFRS), gross income grew 15 percent YoY to $15.5 billion and net income 12.8 percent YoY to $3.5 billion.

Earlier, the global software major reported net profit of Rs.5,906 crore for fourth quarter (January-March) of the fiscal under review, registering 11.5 percent YoY and 8.5 percent sequential growth.

Revenue for the quarter under review (Q4) increased to Rs.24,220 crore, reflecting 12.4 percent YoY and 1.6 percent sequential growth.

Under IFRS, gross income grew 11 percent YoY to $3.9 billion and net income 10.5 percent YoY to $951 million.

“Operating profit was Rs.25,424 crore for fiscal and Rs.6,591 crore for quarter, while operating margin increased to 26.9 percent for fiscal and 27.2 percent for quarter and volume growth was 16.9 percent YoY and 1.4 sequentially.”

“We are living in a world where technology is not just becoming integral to business but to our daily lives. We are playing a leading role in this ongoing revolution, helping our clients navigate and leverage digital to help grow their businesses,” TCS chief executive N. Chandrasekaran told reporters here later.

Though the IT outsourcing major hired a whopping 67,123 people last fiscal, a record 47,931 employees left the company during the last 12 months, resulting in net addition of 19,192 techies, taking the total headcount to 319,656 at the end of March 31.

Similarly, in fourth quarter, gross addition was 14,395 and net addition 1,031, as 13,364 techies left the company between January and March, resulting in its attrition rate touching 14.9 percent on annualised basis.

On the outlook for the new fiscal (2015-16), the chief executive said a strong foundation had been laid for growth and investments in platforms, digital and automation were gaining traction with clients.

“We are upbeat on seeing more opportunities in the ensuing quarters to partner with customers across multiple industries in the US, Europe and Japan where we have invested substantially in tools and people,” Chandrasekaran asserted.

To mark the company’s 10 years of going public, the board announced a special reward to all its employees who completed one year service.

“Employees completing one year of service will be eligible for the special reward, which will be equivalent to a week’s salary for every year of service,” the company said in a statement.

The reward will cost the IT sourcing major Rs.2,628 crore ($423 million)

“We have maintained our profitability in a challenging operating environment, where currency has been a strong headwind for some time,” chief financial officer Rajesh Gopinathan said on the occasion.

Noting that there was holistic growth across markets and industries during the fiscal under review, Gopinathan said Europe led growth in major markets, while Britain and North America grew in line with the company average.

“All major industry verticals grew in double digits led by retail, manufacturing, life sciences & healthcare and BFSI (banking, financial services and insurance) in the fiscal,” Gopinathan added.

The company made 25,000 offers on engineering campuses for trainees who will join from second quarter (July-September) of this fiscal (2015-16).

“Our attempts to build a next-gen organisation that is social, mobile, engaged and collaborative continues. We are also extending the model of using social and platform-based collaboration tools to connect with students from colleges across India and globally,” TCS’ human resources head Ajoy Mukherjee said.

TCS also crossed the milestone of employing over 100,000 women, with gender diversity of 33 percent and 122 nationalities represented in its global workforce.

By Sarkaritel April 17, 2015 10:45