India’s IT major Tata Consultancy Services (TCS) recorded a 23 percent rise in its net profit for fiscal 2015-16, at Rupees 24,215 crore. The net profit for the fourth quarter of 2015-16 beat all the expectations of analysts and recorded a growth of 64.4 at Rupees 6,341 crore (year-on-year). Also Read - TCS Q2 Result: Profit up 2%, Rs 45 announced as dividend
While the company’s revenue for the last quarter jumped 17.5 percent to Rupees 28,449 crore, revenue for the year increased 14.8 percent to Rupees108,646 crore.
“Our core portfolio performed strongly in a seasonally weak fourth quarter driven by strong volumes led by growth in BFSI, retail and manufacturing sectors. This gives us good momentum going into the new financial year,” TCS CEO and MD N Chandrasekaran said in a statement.
“Investments in building high impact digital platforms is paying off, resulting in over $2.3 billion in digital revenues,” he added.
The result came at a time when the company is facing a $940 million fine in the US in a software piracy case. Tata Consultancy has since denied any wrong-doing and says it intends to appeal against the verdict in higher courts.
Operating margin was 26.5 percent for fiscal and 26.1 percent for Q4 while operating profit grew 26.3 percent to Rupees 28,790 crore annually and by a whopping 87 percent to Rupees 7,412 crore quarterly.
The company’s revenue from digital technologies crossed $2.3 billion and revenue from India business crossed $1 billion. The revenue growth from digital technologies is a 52 percent growth in constant currency. The growth was led by banking and financial services, life sciences and manufacturing.
“Our investment in building high impact digital platforms is paying off, resulting in $2.3 billion in digital revenue. We are building the right talent pool by training about 120,000 TCSers in FY16 in 400 digital technologies to help customers drive adoption of digital in their enterprise,” Chandrasekaran said.
The company added eight clients each in $100-million and $50-millon deals, 11 in $20-million wins and 37 in $10-million contracts during the fiscal.
“We will continue to invest in developing ‘digital’ talent and launch new products in emerging areas, leveraging the Internet of Things (IoT), automation and machine learning,” Chandrasekaran added.
The company added 22,576 employees in the fourth quarter but witnessed the exit of 13,424 employees in last three months. The net addition of 9,152, employees took the total number of employees to 353,843.
“The year saw an all-time high gross addition (90,182) and a net addition of 34,187 employees while 55,995 engineers left during the last 12 months,” said company’s global head of human resources Ajoy Mukherjee.
This story was originally published on The American Bazaar.