Mumbai, Jan 15 (IANS): Cross currency due to volatility in the forex market impacted net profit and revenue of Indian IT bellwether Tata Consultancy Services (TCS) for third quarter of fiscal 2014-15.

As a result, the global software major's net profit for the quarter under review (Q3) at Rs.5,328 crore was flat or marginally lower year-on-year (YoY) from Rs.5,333 crore posted in same period year ago, under the Indian General Accepted Accounting Principles (GAAP). Sequentially, net profit was 1.6 percent up from Rs.5,244 crore posted in second quarter of the fiscal.

Under the Indian Financial Reporting Standard (IFRS), the company reported net profit of Rs.5,444 crore for the quarter, which is 5.1 percent up YoY from Rs.5,180 crore in like period year ago and 2.9 percent up sequentially from Rs.5,288 crore quarter ago.

Revenue, however, increased 15 percent YoY to Rs.24,501 crore during the quarter from Rs.21,294 crore in like period year ago and 2.9 percent sequentially from Rs.23,816 crore quarter ago.

"Though sharp cross currency movements impacted our dollar revenues, revenue growth in constant currency was 2.5 percent in the quarter," TCS chief financial officer Rajesh Gopinathan said in a statement here.

Under the International Financial Reporting Standard (IFRS), net income grew 4.4 percent YoY to $873 million from $836 million in like period year ago but was sequentially flat from $872 million in second quarter.

Revenue in dollar terms, however, increased 14.3 percent YoY to $3.93 billion from $3.44 billion in same quarter year ago but remained sequentially flat from $3.93 billion quarter ago.

"We have maintained our momentum in a traditionally weak quarter for the IT industry. In constant currency terms, we have seen significant growth in US, Europe as well as emerging markets like Latin America and Middle-East Africa," TCS chief executive N. Chandrasekaran told reporters.

The outsourcing major's operating profit grew 3.9 percent YoY and 3.7 percent sequentially to Rs.6,586 crore, while operating margin improved to 26.9 percent YoY.

"Our diversified portfolio and presence across key markets have helped us overcome soft seasonal demand in some sectors," Chandrasekaran said.

Though the city-based company declared its financial results after the stock markets closed for the day, its blue chip scrip with face value of Re.1 per share closed at Rs.2,545, gaining Rs.26.85 or 1.07 percent from Wednesday's closing of Rs.2,518.15, after opening at Rs.2,521.95 and touching a high of Rs.2,583.50 and a low of Rs.2,521.95 during the intra-trading session.

"Based on our progress this quarter (Q3), we are well on our way to post industry-leading growth for FY15. In areas like digital, simplification and governance, we continue to partner with customers to help them prepare their businesses to succeed in an economy where the default is digital," Chandrasekaran added.

While the company hired 16,561 people for the quarter, exit of 11,693 employees during the three months led to a net addition of only 4,868 people, taking the total strength to 318,625.

Attrition rate on annualised basis increased to 13.4 percent in third quarter from 12.8 percent in Q2.

Utilisation rate, however, increased to 86.7 percent excluding trainees and to 82.1 percent, including trainees.

"Our hiring continues to support strong business growth and we are likely to exceed our hiring target for this fiscal, while our efforts to push the utilisation bar continue with the rate crossing 86 percent without trainees and 82 percent with trainees," TCS global head for human resources Ajoy Mukherjee said in the statement.