BENGALURU: Tata Consultancy Services Ltd, India’s leading IT services company, beat expectations and reported its best ever growth for the December quarter in nine years with a sequential revenue growth of 4.7 per cent in a seasonally weak quarter. In dollar terms, there was a 5.7 per cent sequential revenue growth at $5.7 billion. Net profit rose 7.1 per cent to Rs 8,701 crore over the previous year.
The IT major also announced a dividend at the rate of `6 per share. “Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter,” Rajesh Gopinathan, Chief Executive Officer and Managing Director, said.
The company also reported a strong operating margin at 26.6 per cent and the contract value for the quarter excluding the recent acquisition of Deutsche Bank’s IT infrastructure, Poistbanks stood at $6.8 billion. “We are entering the new year on an optimistic note, our market position stronger than ever
before, and our confidence reinforced by the continued strength in our order book and deal pipeline,” he added. All verticals showed a good sequential growth with manufacturing growing 7.1 per cent.
Consolidated revenue for the quarter under review increased sequentially to Rs 42,015 crore, and the year-on-year increase was 5.4 percent for the quarter. Employee engagement levels were also positive with attrition falling to 7.6 per cent. There was a net addition of 15,721 employees during the quarter taking the headcount to 4,69,261. Currently, 3.4 per cent of the IT service provider is working from home and an announcement of wage hikes is likely to be made in March.
“Looking beyond the immediate business growth opportunity, we are tremendously excited by what lies ahead. Cloud is enabling a new class of boundaryless organizations, that can seamlessly partner and collaborate within larger ecosystems to create innovative purpose-driven offerings for customers,” Gopinathan said in a statement.