TCS, India's biggest outsourcer, on Thursday announced better-than-expected earnings for the quarter ended March 31, 2018. TCS reported a net profit of Rs 6,904 crore on net income from operations of Rs 32,075 crore. TCS board approved a 1:1 bonus issue of equity shares, subject to the approval of the shareholders. A 1:1 bonus means that a shareholder will get one share for each share held by him/her. The board of directors also has declared a final dividend of Rs 29 per equity share. Analysts on average had expected the Mumbai-based company to report a profit of Rs 6,798 crore, according to Reuters. TCS is more confident about BFSI revenues from North America as client discussions show there is "not much stress left in the system," and this could potentially translate into better client spending through the course of the year, said CEO Rajesh Gopinathan.
In dollar terms, TCS reported revenue of $4,972 million, up 3.9 per cent quarter-on-quarter and up 11.7 per cent year-on-year. "We're glad to announce we're back to double digit trajectory on dollar revenue growth," CEO and MD Rajesh Gopinathan said.
(Read: TCS Expects Rebound In Financial Client Spending As It Posts Highest-Ever Profit)
In the December quarter, TCS had reported net profit of Rs 6,531 crore on net income from operations of Rs 30,904 crore.
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Mr Gopinathan added: "As customers move forward in their Business 4.0 journeys, TCS Is helping them leverage digital technologies to drive their growth and transformation agendas. The multiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives. "
TCS announced earnings after market hours today. Its shares ended 1 per cent higher at Rs 3,190 today.