TCS misses expectations, net profit increases 4.2%
SCORECARD Digital business grows 29% during Q4; most industries post profits
The country’s largest software exporter, Tata Consultancy Services (TCS), on Tuesday reported a 4.2% growth in net profit at ₹6,608 crore for the quarter ended March 2017. The company had reported net profit of ₹6,340 crore in the same period last fiscal according to Indian accounting norms.
Analysts had, on average, expected a consolidated profit of ₹6,662 crore, according to Thomson Reuters data.
The Tata Group company, which accounts for more than 60% of the group’s overall profit, reported a revenue growth of 4.2% at ₹29,642 crore for the said quarter, up from ₹28,449 crore a year earlier.
“2016-17 was a year of broadbased growth amid economic and political turbulence in our key markets. We added $1.4 billion in constant currency revenues during the year,” TCS CEO and MD Rajesh Gopinathan said.
He added that the company’s digital business grew 29% annually to $3 billion, with most industries showing double-digit growth.
At the end of the fourth quarter, digital revenues were at 17.9%, with a sequential growth of 7.6%.
For the entire 2016-17, TCS saw its net profit growing 8.3% to R26,289 crore, while revenue rose 8.6% to R1,17,966 crore.
During the January-March 2017 quarter, TCS added 20,093 employees (gross) while on a net basis, the addition was 8,726, taking the overall employee strength to 3,87,223.
Attrition rate was at 11.5% during the quarter.