Tata Consultancy Services (TCS), India's largest software services exporter, reported a 14.19% rise in its net profit for the third quarter ended 31 December, 2015, at Rs 6,083 crore, and a 11.68% increase in revenues at Rs 27,364 crore.
The Mumbai-based company had reported net profit of Rs 5,327 crore and revenues of Rs 24,501 crore for the corresponding period ended 31 December, 2014.
In dollar terms, the revenues were $4.145 billion, a growth of 5.5% year on year, while net profit was $926 million, up 6% year on year.
However, on a sequential basis, there was a marginal decline of 0.3% in revenues, from $4.156 billion in the July-September quarter. Net profit remained flat at $926 million.
The company's operating margin for the third quarter was at 26.6%, down 47 basis points from 27.07% in the preceding quarter.
Chief Executive Officer and Managing Director N Chandrasekaran acknowledged the impact of the Chennai floods on the company's earnings.
"All our industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods," he said.
TCS has about 65,000 employees in Chennai.
"In a challenging quarter with significant cross currency and other headwinds, we have operated with rigor and discipline to deliver credible margin performance and generated excellent cash flows," Chief Financial Officer Rajesh Gopinathan said.
The company declared an interim dividend of Rs 5.50 per share.
TCS added 34 clients in the $100-million category, while the number of clients in the $20-million category rose by two to 173. There were nine key wins for the company — three in North America, three in Europe, two in Latin America and one in the UK.
The company added 9,071 employees on a net basis during the quarter, taking the employee strength to 3.44 lakh. The attrition rate was 15.9%. The utilsation was 84.9% excluding trainees and 80.9% including trainees.
Ahead of the declaration of results, shares of TCS remained volatile in trade on Tuesday, with the stock hitting an 18-month low of Rs 2,313 intraday and then plunging further to Rs 2,301. It managed to close at Rs 2,324, down 1.65% from its previous close on the BSE.
Infosys will declare its results on 14 January.
