If Infosys set the tone at the beginning of the earnings season in FY14, Tata Consultancy Services, the country’s largest information technology (IT) services company, took it ahead on Thursday with a brilliant set of numbers, an all-round growth.

The Mumbai-based company beat the Street’s expectations in almost every aspect — net profit growth, margins, volume growth and growth across geographies.

In the quarter ended June 30, the company posted 15.7 per cent growth in net profit at Rs 3,831 crore when compared with the corresponding quarter last year. Revenue rose 21 per cent to Rs 17,987 crore. On a sequential quarter (compared with the trailing quarter) basis, net profit grew 5.5 per cent and revenue grew 9.5 per cent, better than what Infosys reported for the same period.

The growth was driven by a 6.1 per cent growth in volume (growth in billed man-hours in a quarter), one of the highest posted by it in the recent past. Infosys had reported 4.1 per cent volume growth.

Also, despite a negative impact due to a pay rise, TCS improved its operating margin by 50 basis points to 26.9 per cent, much closer to its stated comfort zone of 27 per cent. The utilisation rate during the quarter stood at 82.7 per cent, one of the highest in the recent past.

For more visit: Business Standard

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