The country's largest software services firm Tata Consultancy Services (TCS) on Tuesday reported 10.8 percent growth in consolidated net profit to Rs 8,131 crore for the quarter ended June 30.
It had posted a net profit of Rs 7,340 crore in the year-ago period, the company said in a Bombay stock exchange (BSE) filing. Revenue of the Mumbai-based firm grew 11.4 percent to Rs 38,172 crore in the June 2019 quarter, compared to Rs 34,261 crore in the same quarter of 2018-19, it added.
"We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter," Tata Consultancy Services (TCS) CEO and Managing Director Rajesh Gopinathan said.
Digital revenue accounted for 32.2 percent of the top line, growing 42.1 percent in the said quarter over the previous year. The company had a net employee addition of 12,356 employees - its highest in five years, taking the total headcount to 4,36,641 people.
"...our margins this quarter fully reflect the annual increments that we effected across the board in April. Sustained rigor in operations helped deliver strong cash conversion and EPS expansion," TCS chief financial officer V Ramakrishnan said.
The Earnings Per Share (EPS) was at Rs 21.67, up 13 percent year-on-year. The Board has recommended a dividend of Rs 5 per equity share for the June quarter.
Shares of TCS ended at Rs 2,131.45 apiece on the BSE, over 2 percent lower from its previous close.
TCS is one of the largest Indian company by market capitalization. It is now placed among the most valuable IT services brands worldwide. In 2015, TCS was ranked 64th overall in the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the top Indian company.