TCS net, revenue grow robust in third quarter

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SME Times News Bureau | 10 Jan, 2019
Indian IT bellwether Tata Consultancy Services (TCS) on Thursday posted robust net profit and revenue for the third quarter of this fiscal (2018-19), beating estimates by analysts and a weaker rupee.

The city-based Tata Group's flagship company reported Rs 8,121 crore consolidated net profit for the quarter (Q3) under review, registering 24 per cent annual growth from Rs 6,545 crore in the same period a year ago.

Similarly, consolidated revenue for the quarter grew 21 per cent year-on-year (YoY) to Rs 37,338 crore from Rs 30,904 crore in the like period a year ago.

Sequentially, net profit rose 2.5 per cent from Rs 7,927 crore but revenue remained flat (0.1 per cent) from Rs 36,854 crore a quarter ago.

Under the International Financial Reporting Standard (IFRS), net income grew 12 per cent YoY to $1,140 million from $1,014 million in the same period a year ago and gross revenue rose 9.7 per cent YoY to $5,250 million from $4,787 million in the like period a year ago.

Sequentially, net income grew 1.9 per cent from $1,119 million and gross income remained flat (0.7 per cent) from $5,215 million a quarter ago.

Profit before tax grew 24 per cent YoY to Rs 10,727 crore from Rs 8,651 crore in the same period year ago and 2.2 per cent sequentially from Rs 10,501 crore a quarter ago.

Operating margin for the quarter at 25.6 per cent remained flat (0.4 per cent) YoY.

Accounting for 30 per cent of the revenue, digital business grew a whopping 53 per cent YoY during the quarter.

Geographically, growth in Britain was 25 per cent YoY and in Europe 17.6 per cent YoY.

"The board has recommended Rs 4 or a whopping 400 per cent dividend per share of Re 1 face value," said the company in a statement later.

The company's blue-chip scrip of Re 1 face value, however, ended trading flat (35 paisa) on the BSE at Rs 1,888.15 from Wednesday's closing price of Rs 1,887.80 and opening rate of Rs 1,904 after touching a high of Rs 1906.80 and a low of Rs 1,874.10 during the intra-trading sessions.