Published: Fri, April 20, 2018
Life&Culture | By Rose Hansen

Tata Consultancy Services fourth-quarter profit rises 4.5 percent

Tata Consultancy Services fourth-quarter profit rises 4.5 percent

India's top IT outsourcing firm, on Thursday reported a 4.4 per cent growth in its consolidated net profit at '6,904 crore for the quarter, helped by large deal wins.

In a regulatory filing on the BSE, the IT major said consolidated revenue for the fiscal under review (FY 2018), however, grew 4.4 per cent yearly to Rs 1,23,104 crore from Rs 117.966 crore in fiscal 2016-17 (FY 2017).

For the 2017-18 financial year, TCS saw its net profit dipping 1.7 percent to Rs 25,826 crore, while revenue rose 4.3 percent to Rs 1.23 lakh crore.

Digital revenue accounted for 23.8 percent of revenue, up 42.8 percent year-on-year.

Operating margins in the fourth quarter stood at 25.4 per cent, versus 25.7 per cent in the year ago quarter. Revenue rose to almost $5 billion, a 2% growth sequentially in constant currency (which discounts the impact of cross currency fluctuations) and 11.7% year-on-year growth in reported currency. Incremental revenue in the quarter was $185 million, one of the highest in recent times.

MD and CEO Rajesh Gopinathan said that increased demand in the region coupled with the company's ability to package different digital solutions together helped TCS capture new projects in the region. "The dollar revenue growth was supported by strong cross currency tailwind (1.9 percent in our view)", Research said.

Shares gained one percent ahead of results in a broader Mumbai market that ended 0.37 percent higher.

Semi in intersection at time of Humboldt Broncos bus crash: RCMP
The preliminary investigation determined the tractor-trailer was in the intersection at the time of the collision. As well numerous other documents and records have been collected on site such as log books.

"Disciplined execution delivered an all-time high cash conversion in Q4".

Greater adoption of digital technologies by customers resulted in several large, multi-practice integrated deal wins. "With revenue growth improving, and our digital business scaling up, we expect our margins to remain in a stable range". Growth was led by the Energy & Utilities vertical, which grew 33.7 per cent in the quarter, followed by Travel & Hospitality, which registered a 25.4 per cent growth. "The multiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives", he further said.

On a YoY basis, the business from Continental Europe grew by 19.1 percent, United Kingdom 10.7 percent and Asia Pacific 8.6 percent which all led the growth.

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

The IT services attrition rate for TCS fell by 0.1 per cent in the quarter to 11 per cent, while the total attrition rate (including BPS) fell to 11.8 per cent. TCS added 4,118 net new employees in the quarter.

The volume growth for the year was at 7.6 percent & revenue growth in constant currency was 6.7 percent.

Like this: