Mumbai : Largest IT services exporter TCS on Monday reported an 8.4 percent growth in its September quarter net profit at Rs 10,431 crore, crimped by a dent in margins.
The Tata group company, however, said the operating environment is ” challenging ” and warrants ” vigilance “, even though the headwinds posed by factors like recession in its biggest market US, rising inflation around the world, and currency volatilities are yet to materialize into its order pipeline.
Its Chief Executive Officer and Managing Director Rajesh Gopinathan said it is difficult to say if the company will be completely insulated from the events as they unfold, and made it clear that it will try to minimize the risks as much as possible.
The reporting quarter saw an 18 percent jump in revenues to Rs 55,309 crore as against Rs 46,867 crore in the year-ago period, but it was a 1.60 percentage point narrowing in the operating margin to 24 percent which crimped the profit growth.
Its Chief Financial Officer Samir Seksaria said an increase in human resource consultant fees led to a one percentage point dent on the margins, while a rise in discretionary spending on aspects like travel and marketing led to a further impact.
The margins benefited from aspects like currency movements, which finally blended into a 1.60 percentage points impact .