Mumbai, April 18: After disappointing the Street for six straight quarters, Tata Consultancy Services (TCS) returned to winning ways today by recording a 64.4 per cent growth in net profit for the quarter ended March 31, 2016. Net profits of the country's largest IT services firm rose to Rs 6,341 crore over the same period last year.

Analysts had expected the company to report a net profit in the region of Rs 6,200 crore. The better-than-expected performance from TCS comes days after a US grand jury in Wisconsin slapped a $940-million fine on the company.

It came on the back of a strong 3.2 per cent volume growth (growth in man hours billed) as key verticals such as BFSI, retail and manufacturing put up a good show. The performance was also boosted by the digitial business, which contributed 15.5 per cent to revenues during the quarter.

The quarter saw US dollar revenues coming at $4.21 billion, a growth of 1.5 per cent on a sequential basis.

Revenues during the quarter in rupees stood at Rs 28,449 crore, a rise of 4 per cent on a sequential basis for 2015-16. Revenues for the year crossed the Rs 1-trillion-mark at Rs 1,086,462 crore, a rise of nearly 15 per cent over the previous year.

Dollar revenues for the year stood at $16.54 billion, which in constant currency is a growth of around 11.9 per cent - lower than Infosys's 13.3 per cent growth for the year.

"Our core portfolio performed strongly in a seasonally weak fourth quarter, driven by strong volumes in BFSI, retail and manufacturing sectors. This gives us a good momentum going into the new financial year. Our investments in building high impact digital platforms is paying off, resulting in over $2.3 billion in digital revenues.

"We are building the right talent pool by training more than 120,000 TCSers in 2015-16 in over 400 new digital technologies to help our customers drive adoption of digital in their enterprise," N. Chandrasekaran, CEO & managing director of TCS, said.

Chandrasekaran told reporters that the number and size of deals in the digital arena indicated continuity of the growth momentum. TCS expects that the current year will be strong as it was exiting the fourth quarter with lower headwinds. He said TCS will be giving 8-12 per cent wage hikes to its employees.

During the quarter, while the company saw good client addition, margins disappointed as it dipped nearly 50 basis points to 26.1 per cent from 26.6 per cent in the preceding three months. For the current year, TCS expects margins to come between 26-28 per cent.

However, employee attrition showed a drop over the preceding quarter as it declined to 15.5 per cent. Client addition was also strong with three clients being added in the $100-million revenue band and 8 in the $50-million band.

Growth in the fourth quarter was led by Europe (3.6 per cent quarter on quarter) and North America (2.4 per cent) in constant currency. For the year, while North America grew by 10.8 per cent, Europe by 12.9 per cent, the UK showed a rise of 8.3 per cent in constant currency. India crossed the $1-billion milestone in annual revenues while overall revenues from new growth markets stood at $3.3 billion in the year.

Replying to a query on the impact of the grand jury verdict on TCS, Rajesh Gopinathan, chief financial officer, said the company is treating it as a contingent liability.