TCS touches $1bn profit mark for the first time with 2.9pc rise in Q3 profit

MUMBAI, INDIA: Tata Consultancy Services(TCS) touched USD 1 billion-mark in profit for the first time as it reported an increased profit of 2.9 percent sequentially to Rs 6,778 crore($1bn approx.) for the quarter ended on December 31, 2016.

Revenue in Q3 increased by 1.5 percent sequentially to Rs 29,735 crore.

The company added two new clients in $50 million-plus category and five others in $10 million-plus category.

TCS CEO and MD, N Chandrasekaran said,  “The resilience of our business model and strength of our operating strategy has been brought to the fore by our performance in Q3, traditionally a quarter of weak demand.”

The strengths in Digital, Platforms and Cloud is driving the company's ability to play a strategic role and make a holistic impact on the business, said the company. Digital business of TCS registered a 30.2 percent YoY growth.

"To support and sustain our Digital business, we continue to build new capabilities in Digital technologies, empower employees to enhance agility in the workplace and invest more to develop IP-based platforms and products. Some of these products and platforms are maturing with greater customer adoption while others continue to be incubated in our Innovation labs,” added Chandrasekaran.

Geography wise, Latin America and India clocked double digit growth of 12.5 percent and 10.3 percent sequentially, while mature markets like North America grew 2.2 percent and UK showed 1.7 percent QoQ growth. MEA revenue rose 3.8 percent. Continental Europe and APAC revenue dipped 1. 1 percent and 1.8 percent QoQ.

Domain wise growth in Q3 was led by energy & utilities segment (5.8 percent QoQ), hi-tech (2.6 percent), BFSI (2.1 percent), manufacturing (2.1 percent) and retail (1.9 percent).

Infrastructure services recorded highest growth of 9.5 percent sequentially followed by Engineering & Industrial Services, which recorded 3.1 percent QoQ growth.

The attrition rate for the quarter reduced to 11.3 percent (last twelve months) in IT services segment.