After reporting a 17.7 percent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter, Rajesh Gopinathan, managing director and chief executive officer, Tata Consultancy Services (TCS) on Friday said the company is entering FY20 on a strong wicket.
The Tata Group's cash-cow delivered a net income of Rs 31,472 crore for fiscal 2019 under the Ind-AS accounting, up 21.9 percent over the previous year. TCS said its annual revenue clipped past 9.6 percent in constant currency terms to $20.91 billion, which is the highest growth rate during the past 15 quarters.
When asked if TCS would be able to sustain margins at 22.6 percent going forward, Gopinathan said, "There is structural stability to the margins. It is subject to currency. As we have always said that the currency is an integral part of our business model. We have once again announced salary hikes and in markets like India, it is close to six percent so that differential has to get reached by a currency."
On the hiring front, Ajoyendra Mukherjee, head - human resources, said, "As far as next year is concerned, TCS has changed the way we hire our trainees. We have gone ahead with the TCS National qualifier test and 1,800 colleges across India participated in it and after that, we have given about 13,000 plus offers for trainees to come and join us in the next financial year."
N Ganapathy Subramaniam, chief operating officer, said, "TCS hopes to sustain the double-digit growth performance in FY20 as well. The focus will be to stay where we are and then improve our performance from here on."