Tata Consultancy Services (TCS), India's leading software exporter, has reported third quarter earnings today that met the analysts' estimates.
Earnings for the quarter rose 2.90% on y-o-y basis to Rs 54.44 billion for the third quarter ended December 2014, as per IFRS INR. However, on the sequential basis, the profit increased 1.59%.
Revenues has grown 2.9% sequentially and 15.1% on year-on-year basis to Rs 245.01 billion. Operating income went up 3.6% sequentially and 4.6% on year-on-year basis to Rs 63.51 billion. Operating margin stood at 26.7%.
Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said, 'We have maintained our momentum in a traditionally weak quarter for the IT industry. In constant currency terms, we have seen significant growth in USA, Europe as well as emerging markets like Latin America and MiddleEast Africa. Our diversified industry portfolio and presence across key markets have helped us overcome soft seasonal demand in some sectors.'
Chandrasekaran added, 'Based on our progress this quarter, we are well on our way to post industry-leading growth for FY15. In areas like Digital, Simplification and Governance, we continue to partner closely with customers to help them prepare their businesses to succeed in an economy where the default is digital.'
Rajesh Gopinathan, Chief Financial Officer, said, 'Sharp cross currency movements have impacted dollar revenues, but we continue to manage operations with discipline and rigour while investing in people, capabilities and infrastructure on an ongoing basis.'
Shares of the company gained Rs 26.85, or 1.07%, to settle at Rs 2,545 at the BSE (Thursday).