The country’s largest IT services company, TCS, on Thursday reported a 15 per cent jump in net profit to Rs 13,884 crore for the September quarter.
TCS, the biggest revenue source for Tata Sons, reported a net profit of Rs 12,075 crore in the year-ago period and Rs 13,349 crore in the preceding September quarter.
Kicking off the Q2 earnings season for India Inc, the company said revenue from operations jumped 11.22 per cent to Rs 73,188 crore in the July-September period from Rs 65,799 crore in the year-ago period. In the June quarter, its topline stood at Rs 72,275 crore.
The company’s chief executive K Krithivasan said it is a broad-based growth spanning all its international markets and industry segments.
The annualised revenues from artificial intelligence, which is feared to disrupt the long-standing Indian IT services model, grew to USD 3 billion in the September quarter from USD 2.6 billion in June, its chief operating officer Aarthi Subramanian said.
From a new deal signing perspective, it reported a total contract value of USD 9.6 billion for the July-September period, marginally up from USD 9.5 billion a quarter ago.
On a net basis, TCS added 4,258 employees in the last three months to take its overall staff strength to 5,98,056 as of September 30, and attrition in the IT services vertical stood at 13.3 per cent.
On the profitability front, the company’s pre-tax margin was flat when compared to the June quarter at 24 per cent.
Energy, resources and utilities business revenues grew 5.7 per cent year-on-year on a constant currency basis, making it the fastest-growing segment among all sectors. The consumer business declined 1 per cent.
Its largest market, North America, delivered a 1.5 per cent growth in revenues on a constant currency basis, while India was the fastest-growing region at 6 per cent.
The company board recommended a dividend of Rs 12 per share, with October 14 as the record date.
Ahead of the results, the TCS scrip closed 0.42 per cent down at Rs 2,075.25 apiece on the BSE, as against a 1.44 per cent correction on the benchmark.