TCS latest quarter results disappoint

The company's revenue in rupee terms rose 0.7% to Rs 27,364 crore while dollar revenue declined 0.3% to USD 4,145 million compared to the preceding quarter, largely impacted by the Chennai floods and the holiday season.

Chief Executive Officer and Managing Director, N Chandrasekaran said, “All our industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods. Our international business has grown smartly in CC terms with North America and Europe leading the way among major markets and Latin America among growth markets.”

He also said, “Digital will remain the core focus for enterprise IT in 2016 as our customers respond to competition in a global economy driven by real-time insights. With 13.7% of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers."

The company continued to hire to support business growth. There was a total gross addition of 22,118 people (net addition of 9,071 employees) taking the total employee strength to 344,691 employees on a consolidated basis. The attrition rate (LTM) fell to 15.9%.

“Our efforts to increase employee retention is working with quarterly attrition rates falling in Q3. Our hiring continues to support strong business growth and we continue to invest in building digital skills, with over 70,000 TCSers undergoing training in new technologies this year,” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.

TCS shares closed 1.5 per cent lower at Rs 2,327 after hitting a 52-week low.