Indian IT major Tata Consultancy Services is delighted to witness a mammoth growth for the third quarter that ended in December 31, 2018. In this quarter, TCS earned a net profit of INR 8,105 crore as compared to INR 6,531 crore it had earned in the same period last fiscal. This upsurge of 24.1 percent in its net profit shows the strong growth trajectory of this IT giant.
Moreover, the company has also witnessed a quantum jump in its revenue in the same period. Data shows that its revenue in the third quarter grew by 20.8 percent year-on-year basis which is valued at INR 37,338 crore against INR 30,904 crore. On a constant currency basis, the revenue has grown by close to12.1 percent.
TCS had a total contract value worth $ 5.9 billion for the October- December quarter, quite more than $4.9 billion that it had earned in July-September quarter.
“We are concluding the year 2018 with a very strong revenue growth of 12.1 percent for the December quarter which is the highest revenue growth in 14 quarters. In this period the company has witnessed a momentous growth in all key verticals and across all geographies,” said the CEO- Rajesh Gopinathan in a statement.
The company is also doing well in its digital share where its revenue has been on constant rise and accounts for 30.1 percent of the total. UK, Europe, and North America also registered an impressive year-on-year growth of 25.1 %, 17.6 % and 8.2 % respectively in constant currency terms. TCS has also declared a third interim dividend of ₹4 per equity share.
“Despite having higher cost of doing business and volatility in Indian currency- TCS’ operating margins have been resilient,” said TCS’ CFO- V Ramakrishnan. “Operating margins were grown to 25.6 percent but below the stated target of 26-28 percent.”
During the October-December quarter, the company has recruited 6,827 people which took its total employee strength to 4,17,929 people. However, the attrition rate was close to 11.2 percent on last twelve month basis. “There is a strong demand of both contractual and direct hires in the American industries and we are working to meet such demand as well,” Gopinathan said.