TCS FY13 profit up 15.6 percent, expects more momentum

Summary: India's leading outsourcing giant booked US$2.6 billion in net profit for its last 12 months ended March, and expects a better year ahead with more market opportunities and growth momentum.

By Mahesh Sharma | April 18, 2013 -- 05:50 GMT (22:50 PDT)

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Tata Consultancy Services (TCS) expects more growth momentum in the year ahead, as it posted a 15.6 percent rise in net profit to US$2.6 billion for the financial year ending March 31, 2013.

In a statement Thursday announcing its fourth quarter and annual results, TCS said annual revenue grew to US$11.6 billion, up 13.7 percent.

For its final quarter, the company generated US$663 million in net profit on the back of US$3.04 billion in revenue-- marginal growth on the previous quarter. The quarterly profit was slightly higher than the average earnings estimate of US$658.1million (36.2 billion rupees) among 20 analysts polled by Thomson Reuters.

The company's shares opened lower Thursday on the local stock exchange, at 1,466.85 rupees per share.

TCS added two new "US$100million+" clients in FY13, taking the total to 16. Over the year it added 69,000 new staff. Attrition dropped to under ten percent.

Looking ahead to FY14, N. Chandrasekaran, CEO and managing director, said: "We remain confident that 2013-14 will bring greater opportunities as technology plays an increasing role in reimagining business globally. We continue to identify new growth engines and are investing ahead of the curve in products, platforms and intellectual property that is of great relevance to our customers and their business growth."

Earlier this week, rival Infosys reported a 4 percent drop in net profit for the quarter ended march at US$444 million), while HCL posted a 60 percent profit increase at US$193 million.

According to Sundararaman Viswanathan, engagement manager at Zinnov managment consulting, Infosys lagged the abilities of TCS and HCL to sign a large number of deals in the range of US$10 million to US$50 million.

Topics: Outsourcing, India, Tata

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