Financial Chronicle - - MONEY - FC BUREAU

In­dia’s tech flag­ship, Tata Con­sul­tancy Ser­vices, has opened the third earn­ing quar­ter sea­son for the in­dus­try on Thursday post­ing num­bers that met an­a­lysts’ and mar­ket ex­pec­ta­tions.

TCS re­ported a 24 per cent year-on-year growth in its third quar­ter (Oc­to­berDe­cem­ber) net profit at Rs 8,105 crore, against Rs 6,531 crore in the cor­re­spond­ing quar­ter last year. On a quar­ter-on-quar­ter com­par­i­son, its net profit grew 2.58 per cent. Dur­ing the pe­riod, the com­pany raked in to­tal rev­enues of Rs 37,338 crore, an an­nual in­crease of 20.8 per cent and a QoQ in­crease of 1.3 per cent.

Ra­jesh Gopinathan, chief ex­ec­u­tive of­fi­cer and man­ag­ing di­rec­tor of TCS, said, “We are wrap­ping up 2018 with a strong rev­enue growth of 12.1 per cent in the De­cem­ber quar­ter, which is the high­est in 14 quar­ters, with con­tin­ued growth ac­cel­er­a­tion in key ver­ti­cals and across all ge­ogra­phies. The strong client met­rics, in­dus­try lead­ing growth in dig­i­tal ser­vices, a very strong or­der book and deal pipe­line are all val­i­da­tions that cus­tomers recog­nise our dif­fer­en­ti­ated ca­pa­bil­i­ties and are pick­ing us for their growth and trans­for­ma­tion pro­grammes.”

The com­pany’s rev­enue in con­stant cur­rency terms in­creased 12.1 per cent YoY, the high­est in 14 quar­ters while the con­stant cur­rency rev­enue growth was 1.8 per cent QoQ. The bottomline growth was driven by other in­come (up 59 per cent QoQ) but lim­ited by weak op­er­a­tional per­for­mance.

Rev­enue dol­lar terms was higher by 0.67 per cent QoQ at $5,250 mil­lion in Q3FY19 and con­stant cur­rency growth stood at 1.8 per cent against 3.7 per­cent in the pre­vi­ous quar­ter.

Also, TCS board has de­clared an in­terim div­i­dend of Rs 4 per eq­uity share.

Of­fer­ing a com­men­tary on per­for­mances of var­i­ous ver­ti­cals the com­pany said, rev­enues from BFSI (Bank­ing, Fi­nan­cial Ser­vices and In­sur­ance) 0.5 per cent in QoQ to Rs 14,722 crore, while its Ebit fell 4 per cent to Rs 4,021 crore. Man­u­fac­tur­ing rev­enue grew 1 per cent to Rs 3,958 crore against Rs 3,919 crore dur­ing the pre­vi­ous quar­ter. Man­u­fac­tur­ing Ebit grew 6.6 per cent at Rs 1,162 crore. Rev­enue from re­tail ver­ti­cal has grown 1.6 per cent at Rs 6,994 crore against Rs 6,348 crore quar­ter-on-quar­ter. Re­tail Ebit fell 4 per cent at Rs 1,726 crore quar­ter-on­quar­ter. The com­mu­ni­ca­tion and me­dia ver­ti­cal brought in rev­enue of Rs 6,090 crore, a 1 per cent in­crease over Rs 6,009 crore QoQ.

The com­pany’s key growth was led by UK (+25.1 per cent), Europe (+17.6 per cent), and Asia Pa­cific (+12.6 per cent). North Amer­ica grew 8.2 per cent, In­dia grew 9.7 per cent and Latin Amer­ica grew 7.6 per cent.

When the in­dus­try is gen­er­ally fol­low­ing a job-less growth regime, TCS has re­ported an im­pres­sive net ad­di­tion 6,827 peo­ple dur­ing Q3, tak­ing the to­tal em­ployee strength to 417,929.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.