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TCS Q1 net soars 45%

Mumbai (PTI): TCS, country’s largest software exporter, on Thursday posted a 45 per cent jump in June quarter net profit at Rs 5,568 crore helped by a broadbased revenue growth and one-time impact from a change in depreciation computation.

The company had posted a net profit of Rs 3,840 crore under the IGAAP system of accounting for the corresponding period last year. “It has been a very well rounded, broadbased growth across the board,” TCS Chief Executive and Managing Director N Chandrasekaran told reporters after announcing results.

On the outlook front, he said the scenario is panning out as per its expectation and added that he maintains the performance in fiscal 2015 will be better than fiscal 2014.

He said markets like US, UK, Europe and India helped Tata Consultancy Services (TCS) achieve a 22.9 per cent jump in revenue on to Rs 22,111 crore during the reporting quarter.The Tata group company faced headwinds in the Middle East and Africa market, while among the segments, all except insurance, where it faced some trouble, performed well.

Chandrasekaran said that while the dip in business from the insurance vertical is nothing to worry about, the company does not expect it the deliver high growth. The inclusion of India among the high growth markets was a surprise and Chandrasekaran tempered expectations, saying he does not expect domestic revenues to rise so well.

In the backdrop of the slew of IT-driven announcements by the new government, Chandrasekaran said TCS expects some opportunities to arise in the space but will wait for them to show up before changing its stance. “ From a India point of view, we are still cautious. I wouldn’t say that we will start to see high growth,” he said.

A change in depreciation methodology had a positive impact of Rs 490 crore for the bottomline under IGAAP, its chief financial officer Rajesh Gopinathan said.

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