TCS had posted a net profit of Rs 6,904 crore on net income from operations of Rs.
32,075 crore in Q4Kicking off the corporate earnings season, TCS or Tata Consultancy Services on Tuesday reported a record net profit of Rs 7,340 crore in the April-June quarter, beating analysts' estimates.
Net profit grew about 24 per cent on a year-on-year basis helped by strong growth in its banking, financial services and insurance division.Analysts, on average, had expected a consolidated net profit of Rs 6,983 crore, according to Thomson Reuters data.TCS, the country's largest IT services exporter, said its total income from operations stood at Rs 34,261 crore.That marked a sequential (quarter-on-quarter) growth of 6.8 per cent and annual (year-on-year) growth of 15.8 per cent.In the previous quarter, TCS had reported anet profit of Rs 6,904 crore over net income from operations of Rs.
32,075 crore."We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders.
Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum.
With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future,"CEO and MD Rajesh Gopinathan said.Revenue growth inconstant currency terms stood at 4.1 per cent compared to the previous quarter,the IT major said in aregulatory filing.The turnaround in the banking, financial services and insurance (BFSI) business led to a robust start to financial year 2018-19, the company noted.
Revenue growth in the BFSI vertical increased to 4.1 per cent annually and 3.7 sequentially.Operating margin lowered to 24.8 per cent in Q1 from25.4 per cent in the fourth quarter of 2017-18.TCSreported a strong QoQ growth in constant currency.
Importantly, BFSI is back on the growth path.
TCS continues to demonstrate strong margin management capabilities, said AK Prabhakar, head of research at IDBI Capital.Tata Consultancy Services registered the highest growth in theNorth America business in last 12 quarters."Disciplined execution, accelerating growth and currency support helped us mitigate the impact of wage increases during the quarter.
This strong start gives us greater confidence in our ability to get our operating margin to our preferred range, while continuing to fund the digital investments that are differentiating us in the marketplace,"chief financial officer V Ramakrishnan said.Revenue from digital services such as cloud, analytics and big data grew about 44.8 per cent from a year earlier.
The company also noted"good client additions" during the quarter.The outsourcer gained two new clients in the $100 million-plus category.Analysts also said viewed rupee depreciation boosted profitability for the company.The rupee has weakened by nearly 8 per cent against the US dollar so far this year.
Since Q4, it has declined 5.6 per cent against the greenback.
Weakness in the rupee against the American currency boosts profitability for exporters.
On Tuesday, the rupee edged lower to settle at 68.83.TCS reported a total attrition rate of 10.9 per cent, marking slight recovery from 11 per cent in the previous quarter.The board of TCS announcedan interim dividend of Rs 4 per equity share of Rs 1 each.
The dividend willbe paid to the equity shareholders on July 25, said TCS, which is the country's only IT company with a market capitalisation (M-Cap) of more than $100 billion.TCS shares closed 0.6 per cent lower at Rs 1,877 on the BSE earlier on Tuesday.