TCS Kicks Off Earnings Season With Rs 8,131 Crore Profit In June Quarter, Declares Rs 5 Dividend
TCS or Tata Consultancy Services - the country's largest IT services exporter - on Tuesday reported a net profit of Rs 8,131 crore in the quarter ended June 30, 2019. That marked an increase of 0.06 per cent over the net profit of Rs 8,126 crore in the previous quarter, beating analysts' estimates. In a regulatory filing post-market hours, TCS said its revenue increased to Rs 38,172 crore in the first quarter of the current financial year, marking an increase of 0.43 per cent on a quarter-on-quarter basis.
Analysts had on an average expected the company to report a profit of Rs 7,824 crore for the June quarter, news agency Reuters reported citing Refinitiv data.
TCS said its operating profit margin stood at 24.2 per cent, while net margin was at 21.3 per cent.
The company's digital revenue, which contributes 32.2 per cent to its total revenue, grew 42.1 per cent compared to the corresponding period a year ago.
"We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter," said Rajesh Gopinathan, chief executive officer and managing director, TCS.
Revenue from the banking, financial services and insurance (BFSI) segment witnessed a marginal dip of 0.8 per cent to Rs 14,978 crore compared to the previous quarter.
The BFSI segment revenue, however, rose 11.24 per cent on an annual basis. TCS said the revenue from its manufacturing segment came in at Rs 4,041 crore. The retail and consumer business contributed Rs 6,422 crore to the revenue, while the contribution by the communication, media and technology vertical stood at Rs 6,236 crore.
The IT major also announced a dividend of Rs 5 per share. It announced a record date of July 17 and payment date of July 23 for the dividend.
In its regulatory filing, TCS reported a net addition of 12,356 employees in the quarter, the highest in five years
Shares in TCS ended 2.05 per cent lower at Rs 2131.45 apiece on the Bombay Stock Exchange, underperforming the benchmark Sensex index which ended flat after two days of sharp losses, ahead of the earnings announcement by the company.
