TCS consolidated net profit jumps 15.5% to Rs 3,831 cr

Tata Consultancy Services, India's largest software services exporter, said its consolidated June quarter net profit rose 15.5 per cent as an increase in orders and foreign exchange gains boosted earnings. The company also saw "all-time low" attrition rate at the end of the June quarter.

Consolidated net profit for the quarter ended June 30 rose to Rs 3,831 crore (Rs 38.31 billion) from Rs 3,280 crore (Rs 32.8 billion) a year earlier.

It reported a consolidated revenue of Rs 17,987 crore, up 21 per cent compared to last year same quarter.

"We will grow above the upper end of the NASSCOM estimate," Chandrasekaran told Reuters.

The National Association of Software and Services Companies, or NASSCOM, an industry lobby, expects India's IT exports to rise 12-14 per cent this year.

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According to the statement released by the company, growth was seen across all industry segments led by life sciences, retail, telecom and BFSI.

“Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific,” said the statement.

During the quarter, TCS closed the acquisition of Alti, one of the top 5 system integrators of SAP solutions in France.

To support the growing business, TCS continued to hire. There was a total gross addition of 10,611 people (net addition of 1,390) taking the total employee strength of 277,586 on a consolidated basis.

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According to Reuters, TCS saw an "all-time low" attrition rate at the end of the June quarter.

For the IT services staff, attrition was at its lowest in 27 quarters, chief executive N Chandrasekaran told reporters in Mumbai, after the company beat expectations for the fiscal first quarter that ended June 30.

The churn is less than 10 percent on a leading-twelve-months basis.

TCS, whose customers include Citigroup, BP PLC, and AstraZeneca PLC, announced its results after the Mumbai markets closed. Its shares were down about 1 per cent compared with a 1 per cent gain in the overall index.

(With inputs from Reuters)