TCS logs 15.5 pc jump in June qtr Net on strong volume growth

Strong demand from across sectors and geographies coupled with forex

gains helped Tata Consultancy Services (TCS) today post a

better-than-expected 15.5 per cent jump in consolidated net profit at

Rs 3,831 crore in the June quarter.



The company's total revenue, under the Indian IFRS accounting

standards, rose 21 per cent to Rs 17,987 crore from Rs 14,869 crore a

year ago.



"It has been a great quarter in terms of volume. We have delivered a

volume growth of 6.1 per cent, the highest in the past seven quarters.

If you look at constant currency growth, it's 4.83 per cent and

international revenue constant currency growth is 5.8 per cent.



"So except for the domestic market, every other market has grown

substantially," TCS Managing Director and Chief Executive N

Chandrasekaran told reporters here this evening.



The IT giant said revenue gains on the rupee fall rose by 160 bps at

Rs 760 crore, while impact on the margins has been Rs 160 crore which

is an increase of 1.64 per cent.



During the first quarter of FY14, the company added two USD 100

million clients, he added.



"TCS' results were above estimates. The highlight was the 6.1 per cent

volume growth, a 7-quarter high," said Dipen Shah, Head of Private

Client Group Research, Kotak Securities.



While TCS beat the street on all counts, its immediate rival Infosys,

which has been disappointing analysts for years, had last week also

surprised market with a rise in net profit and by maintaining its

guidance for the fiscal.



Infosys' Q1 net rose 4 per cent to Rs 2,374 crore. The Bangalore-based

software major kept its US dollar revenue guidance at 6-10 per cent

growth for the fiscal, and raised the rupee guidance upwards to 13-17

per cent. No. 3 software exporter Wipro will announce its numbers July

26.



The quarter under review saw TCS operating margin rising 50 bps to

26.9 per cent, Chandrasekaran said. He said the company saw excellent

growth from verticals like banking, telecom, retail, manufacturing and

life sciences.



Ahead of the numbers, TCS scrips shed over 1 per cent on the BSE to

settle at Rs 1,650.15, while the benchmark Sensex jumped 0.90 per cent

to a six-week high.