TCS Q1 net surges 45%

I ndia’s l argest software services firm, Tata Consultancy Services (TCS), on Thursday reported a 45% yearon-year jump in its consolidated net profit to ` 5,568 crore for April-June quarter from ` 3,840 crore in the year-ago period, driven by broad-based growth across verticals and regions.

The company plans to hire 55,000 people in 2014-15.

Consolidated revenue rose 23% to ` 22,111 crore during the quarter under review from ` 17,987 crore last year. The figures are according to the Indian GAAP accounting standards.

“Our growth has been pretty much broad-based. US has done exceptionally well with about 5.7% growth while our growth in the UK, Europe and India have been (slightly) over 5%,” said N Chandrasekaran, CEO and managing director, TCS.

TCS, which counts Cisco and Hewlett-Packard among its customers, has increased profits at a faster pace than rival Infosys, which have had internal management changes over the last two years. In that period, TCS put its bet on higher IT spending to boost growth.

The company also announced a special dividend of ` 40 per share to mark the tenth anniversary of its IPO. It added 15,817 employees during this quarter, taking its total headcount stood at 305,431 as of June 30.

The utilisation rate touched an “all-time high” of 85.3% excluding trainees.