IT services major Tata Consultancy Services (TCS) today posted a better than expected growth of 50.3 per cent in consolidated net profit at Rs 5,333 crore for the third quarter ended December 31, aided by sectors like life sciences, manufacturing and improved business in Europe.
The country's largest software services exporter had reported a net profit of Rs 3,550 crore in the year-ago period, as per a BSE filing citing Indian GAAP figures.
Net profit as per Indian IFRS rose by nearly 50 per cent to Rs 5,314 crore in the third quarter as against Rs 3,549.62 crore in the corresponding period in the previous year.
Consolidated revenues of the city-based firm rose by 32.5 per cent to Rs 21,294 crore in the October-December quarter this fiscal compared to Rs 16,070 crore in the same quarter of 2012-13 fiscal.
TCS Chief Executive Officer and Managing Director N Chandrasekaran described the quarter as a "very good one".
Quarter-on-quarter (q-o-q) in rupee terms, TCS net profit rose by 15.1 per cent and revenues were up by 1.5 per cent.
"Strong international demand for our services and discipline in execution has helped TCS maintain its momentum and post robust growth in volumes as well as realisation," Chandrasekaran said.
He said the company signed eight large deals in the quarter but was not so optimistic about the domestic market till June or September.
He also described the margins above their estimate of 27 per cent and attributed the good numbers to lower forex losses.
International business grew by 3.8 per cent in dollar terms, he said, adding that attrition stood at 10.9 per cent during the quarter.
The diversified market presence and services portfolio has helped the company overcome seasonal weakness and soft demand in the Indian market, he added.
Buoyed by the results, TCS also increased its hiring target for 2013-14 fiscal by 5,000 to 55,000.
In US dollar terms, net income rose by 31.7 per cent to USD 858 million in the third quarter of the current fiscal against USD 652 million in previous fiscal, while revenues were up by 17 per cent to USD 3.44 billion against USD 2.95 billion during the same period.
Sequentially in dollar terms, net profit rose by 14.7 per cent and revenues were up by 3 per cent.
"Growth in Q3 was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom.