You are here: Home » PTI Stories » National » News
Business Standard

All-round revival buoys TCS nos, net profit soars 23% to Rs 7,340 cr

Press Trust of India  |  Mumbai 

Revival in both the core client segment and key operational geographies, along with some help from the currency gains, aided largest software exporter to report 23 per cent jump in June quarter net at Rs 7,340 crore.

The flagship today said its total income clipped at 15.8 per cent to Rs 34,261 crore under the new accounting standards.

The emerging digital segment saw a massive 44 per cent spike in revenue compared to the preceding quarter and now contributes a fourth of the total income.

Revenue from clients in the banking, and grew 4.1 per cent on constant currency basis as against the preceding three months - the fastest growth in the past 15 quarters - leading to a shift in the management commentary on growth expectations.

said he is enthused by the rising demand from BFSI clients and sees the "green shoots developing nicely" to make him confident of sustaining the momentum and "positive in the medium-term".

Despite all the protestations by the Donald Trump Administration, led by the US, which is its largest operational and income geography netting over 65 per cent of sales, also picked up steam with a 7 per cent revenue growth in constant currency terms and Gopinathan said he is confident of it picking up further during the fiscal year.

Among other geographies, revenues from UK grew 18.7 per cent, (18.6) per cent and (10.8 per cent). From a sectoral perspective, was the fastest growing at 30.9 per cent, while came at 10.9 per cent.

The company achieved a 9.3 per cent revenue growth in constant currency terms and Gopinathan said they will try to meet the objective of double-digit revenue growth for the full fiscal, which is a notch above the industry lobby Nasscom's annual target.

Gopinathan further said the pipeline of large deals is "solid" and key clients are increasing their in a very "significant" manner.

From an operating margin perspective, TCS booked a 25 per cent spread and V Ramakrishnan said though promotions and salary hikes shaved off 1.80 per cent of the margins, currency gains of 0.70 per cent cushioned the impact apart form a 70 bps improvement in operating efficiencies.

There is no change in its hedging stance and it continues to cover against receivables across currencies, he added.

Gopinathan said the cross-currency impact will not prevent them from chasing business in non-dollar geographies like

He said the wins in the BFSI sector are mainly coming in from large and medium banks, and also from wealth management practises.

On retail, he said the business is coming from traditional brick-and-mortar players who are competing with the but added overall the sector is still challenged.

NG Subramaniam said the cash-rich TCS, which announced a mega second share buyback last month worth Rs 16,000-crore, continues to scout for acquisitions in the products space and also enhancing its product capabilities.

As against a negative growth in the same period last year, TCS' net hiring rose by 5,800 to over four lakh, which its attributed to pick up in demand. The attrition decreased marginally to 10.9 per cent, he added.

Gopinathan said they will be using a template designed for Andhra's health cover for rolling out the back-end tech architecture for the Aayushman Bharat Protection Scheme.

Ahead of the earnings announcement, the TCS counter closed 0.56 per cent down at Rs 1,877 on the BSE, as against a 0.85 per cent surge in the benchmark.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 21:20 IST