TCS looks to close FY19 in double digits after 2 years

IT bellwether Tata Consultancy Services (TCS) Thursday said it is looking at ending the year with a double-digit growth after a gap of two years, on the back of what it termed as a "landmark quarter" for the firm.

The country's largest exporter posted a 22.6 per cent jump in consolidated net profit at Rs 7,901 crore in September quarter, compared with a net profit of Rs 6,446 crore in the year-ago period.

Revenues grew 20.7 per cent at Rs 36,854 crore in the quarter, up from Rs 30,541 crore a year ago. Its earning per share for the quarter was at Rs 20.66.

In constant currency terms, revenues were up 11.50 per cent year-on-year.

"On a one-time departure from our typical stance, I want to share that we have the numbers on the board and the momentum to ensure that the double-digit trajectory continues for the rest of the year. The journey has been a reaffirmaton of TCS strategies... it has been a landmark quarter for us," TCS chief executive officer and managing director, Rajesh Gopinath, told reporters here.

"This enables us to strategically focus on the medium and long-term," he added, while indicating that growth has been coming from areas where the company have been investing.

The growth in the reporting quarter was driven by expanding demand for digital transformation across verticals, and continued acceleration in banking, financial services and insurance (BFSI) and retail, the company said.

BFSI and retail verticals continue to accelerate by 6.1 per cent and 15.6 per cent year-on-year, respectively.

V Ramakrishnan, chief financial officer, TCS, said, "It is encouraging to be back in our preferred range of profitability at the operating level. Even as we expand our investments to build on our lead in the digital space, our disciplined operations, the improving growth trajectory and a supportive currency make our margins resilient."