TCS Q3 PAT surges 30% Y-O-Y

Tata Consultancy Services, India’s largest software services firm, has reported robust third quarter figures for the FY’11. The IT bellwether’s consolidated net profit (as per the Indian GAAP) surged 30% y-o-y to Rs 2,370 crore (vs. Rs. 1,824 crore in Q3FY10), while its consolidated revenue too grew at an impressive 26.3% to Rs. 9,663 crore (vs. 7,648 crore in Q3FY10), during the same period. The company’s operating margins stood at near historic high at 28%.The growth was led by mature markets where volumes rose 5.7%. The company added 35 new clients during the quarter. The company’s EPS stood at Rs. 12.08 in Q3FY11 (vs. Rs. 9.31 in Q3FY’10). However, on the flipside, employee attrition was in double-digits at 14.4%. Further, both the employee costs and operation & other expenses too grew significantly during the quarter; while employee costs rose to 3552.23 crore (vs. 2712.38 crore in Q3FY10), operation & other expenses grew to 3211.46 crore (vs. 2663.41 crore in Q3FY10). Overall, expenditure jumped 23.6% to Rs. 6956.95 crore in Q3FY11 from Rs. 5547.36 crore in Q3FY10. 

In comparison, Infosys, the second largest IT services firm, which earlier reported lower growth in both its revenues (up only 23.8% y-o-y) and net profit (up only 14% y-o-y) for the Q3FY’11, disappointed the Dalal Street. 

Buoyed by strong quarterly numbers, the shares of TCS were trading up 3.41% at Rs.1177 in early morning trade.

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