TCS net up 4.6% in Q4, slips 1.8% for 2017-18

Mumbai, April 20 : Tata Consultancy Services (TCS) on Thursday reported that its consolidated net profit for the fourth quarter (Q4) increased 4.6 per cent annually but declined 1.8 per cent yearly for fiscal 2017-18 in rupee terms.

In a regulatory filing on the BSE, the IT major said net profit for Q4 at Rs 6,925 crore was up 4.6 per cent from Rs 6,622 crore in the same period year ago and up 5.8 per cent sequentially from Rs 6,545 crore quarter ago.

"Consolidated net profit for the fiscal under review (FY 2018) declined 1.8 per cent annually to Rs 25,826 crore from Rs 26,289 crore in fiscal 2016-17," it said in the filing.

Under the International Financial Reporting Standards (IFRS), net income for Q4 grew 7.9 per cent annually to (Dollar) 1,070 million from (Dollar) 992 million in the like period year ago and 5.7 per cent sequentially from (Dollar) 1,012 million quarter ago.

For the fiscal under review, net income under IFRS grew 2.3 per cent YoY to (Dollar) 4,005 million from (Dollar) 3,917 million in FY 2017.

Consolidated revenue for Q4 grew 8.2 per cent to Rs 32,075 crore from Rs 29,642 crore in same period year ago and 3.8 per cent sequentially from Rs 30,075 crore quarter ago.

Revenue for FY 2018 grew 4.4 per cent to Rs 1,23,104 crore from Rs 117.966 crore in FY 2017.

Under IFRS, gross revenue for FY 2018 grew 8.6 per cent YoY to (Dollar) 19.09 billion from (Dollar) 17.76 billion year ago.

Operating income for Q4 was Rs 8,147 crore and Rs 30,502 crore for FY 2018, while operating margin for the quarter was 25.4 per cent and 24.8 per cent for the year.

Net margin for Q4 at Rs 6,904 crore ( (Dollar) 1.07 billion) was 21.5 per cent of revenue, while it was 21 per cent of the revenue for the fiscal at Rs 25,826 crore.

"Strong demand in digital across all industry verticals and large transformational deal wins have made this one of our best fourth quarters in recent years," said TCS Chief Executive Rajesh Gopinathan in a statement.

Digital revenue grew 43 per cent in Q4, contributing 24 per cent to the revenue and 35 per cent YoY for the fiscal, accounting for 21 per cent of the revenue.

"As our customers move forward in their Business 4.0 journeys, we are helping them leverage digital technologies to drive growth and transformation agendas," said Gopinathan.

Chief Operating Officer N.

Ganapathy Subramaniam said strong deal wins and good pipeline had positioned the company well in the new fiscal.

"Six industry verticals grew above the average in the fiscal, four of them growing in double digit," said Subramaniam.

Chief Financial Officer V.

Ramakrishnan said the margins were expected to remain in a stable range with revenue growth improving and digital business scaling up in the fiscal under review.

"We stayed geared for higher growth and continued to invest in our people and in the business," he added.

The company added 3 clients in (Dollar) 100-million band, 13 in (Dollar) 50 million, 17 in (Dollar) 20 million and 40 in (Dollar) 10 million.

With net addition of 4,118 techies in Q4 and 7,775 for the fiscal, the company's headcount increased to 3,94,998 at the end of March 31 from 390,880 quarter ago and 387,223 year ago.

"Our total attrition at 11.8 per cent for the quarter and the fiscal is the lowest in the industry," claimed company's human resources global head Ajoy Mukherjee in the statement.

Women account for 35 per cent of the total workforce, which has nationalities from 131 countries.



Source: IANS