Friday, 20 October 2017
Latest news
Main » TCS Q2 profit falls 2% to Rs6,446 crore

TCS Q2 profit falls 2% to Rs6,446 crore

12 October 2017

In a first cut analysis prior to TCS's earnings call with investors, Emkay Global's analyst said, "We believe that the company has delivered strong growth and profitability performance despite sustained pricing pressure and weak INR realisations".

In Q1, TCS posted disappointing financial results with its fiscal first-quarter net profit dropping 10% on-quarter to Rs 5,945 crore.

India's largest software exporter TCS today reported a 2.1 per cent dip in net profit to Rs 6,446 crore for the September quarter on softness in banking and retail segments, but gave better guidance based on client optimism.

In a regulatory filing on the BSE, the IT firm said a revenue of Rs 30,541 crore for the quarter under review was up 3.2 per cent from Rs 29,584 crore sequentially and 4.3 per cent up from Rs 29,284 crore in the like period year ago.

TCS posted a net profit of Rs 64.46 billion (USD 990 million) in the three months to Sept 30, beating analysts' average estimate of Rs 63.06 billion, Thomson Reuters data showed.

Digital business grew 31% from a year earlier, accounting for 20% of the overall revenue, Gopinathan said. The operating margin improved by 170 basis points to 25.1%. Profitability beat was driven by strong cost management both on operational factors (sub-contracting) and selling, general and administrative expenses (savings on visa/travel and other G&A).

TCS' operating margins expanded 1.7 percentage points sequentially to 25.1% in the quarter, aided by a decline the value of Indian rupee against the US dollar and cross-currency gains.

Sizzling Stock Touches New Recent High: Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Cognizant Technology Solutions Corporation (NASDAQ: CTSH ) shares have climbed higher recently touching a new 52-week peak. Americafirst Capital Management Llc acquired 15,923 shares as Express Scripts Holding Co (ESRX)'s stock declined 14.09%.

TCS said most businesses, barring financial services and retail, grew above 9.5% in the last quarter. "People are looking at multiple technologies and how to leverage them", he said. TCS's revenue number is actually uninspiring.

Revenue at $4,739 million in Q2 was up 3.2 per cent from $4,591 million quarter ago and 8.3 per cent up from $4,374 million in the like period year ago.

The company added 28 clients in $1 million plus band.

It added 15,868 employees in the quarter. Strong, broadbased client metrics this quarter demonstrates our Increasing success with newer customers.

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director anticipates better growth going forward.

He said in retail, the company expects an improvement in the next few quarters, but declined to specify a timeline for BFS, the larger revenue contributor, where the commentary was limited to saying that the momentum is positive. There was an assumption that fintech will disrupt the ecosystem.

TCS Q2 profit falls 2% to Rs6,446 crore