Net profit up 34% on year ago
Tata Consultancy Services has reported revenues of INR76.49bn in the third quarter of 2009, up 5.1% compared to INR72.78bn in the same period last year. The revenues increased 2.9% sequentially.
The operating margin for the quarter has increased 126 basis points, while net margin improved 176 basis points, sequentially. For the quarter ended December 31, 2009, the company posted a net profit of INR18.24bn, up 33.9% compared to INR13.62bn in the same period a year ago. Net profit grew 11.1% quarter over quarter.
Chandrasekaran, CEO and MD of TCS, said: “TCS yet again posts high growth and delivers on margin improvements for the third successive quarter in this difficult year. Our investments ahead-of-time in emerging markets, multiple industries and client relationships is reflected in our exemplary performance. This validates the strength of our business model and highlights our differentiated strategy.”
Among verticals, revenue from Banking, Financial Services and Insurance (BFSI) increased to INR34.41bn from INR30.85bn in the previous year and revenue from Manufacturing decreased to INR5.92bn from INR7.21bn in the same period last year. The Retail and Distribution revenue rose to INR8.01bn from INR7.16bn, while revenue from Telecom fell to INR11.13bn from INR11.62bn in the same quarter last year.
Under US GAAP, the company’s revenue was up 10.3% to $1.64bn, compared to the same period last year. Net profit rose 38.9% to $384m.
Mahalingam, chief financial officer of TCS, said: “We have continued to leverage all the margin improvement levers very effectively to deliver growth with higher profitability. This has been achieved in spite of significant currency head-winds.”