TCS logs 10% rise in Q1 profit to `6,317 crore
India's largest software services firm TCS on Thursday reported 9.9 per cent rise in consolidated net profit to Rs 6,317 crore for the first quarter ended June 30, 2016-17. It had posted net profit of Rs 5,747 crore in the April- June period of the 2015-16 fiscal, the Mumbai-based firm said in a BSE filing.
The company's consolidated revenue jumped 14.2 per cent to Rs 29,305 crore for the first quarter of the current fiscal, as against Rs 25,668 crore in the year-ago period. The figures are as per Indian Accounting Standards (Ind AS).
TCS CEO and Managing Director, N Chandrasekaran said strong execution and accelerating customer adoption of cloud, big data and analytics has driven broad-based growth across key markets and industries.
"Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market to gain a competitive edge," he said. TCS has now trained over 1.65 lakh employees in new digital technologies that are rooted in specific domains.
Digital services accounted for 15.9 per cent of the revenue in said quarter, he added. TCS CFO, Rajesh Gopinathan said the company's disciplined approach to operations has helped it counter strong headwinds in the form of annual salary hikes and promotions as well as global currency and market volatility through the quarter.
On a sequential basis, the company's net profit fell marginally, while the revenue rose 3 per cent. The company announced an total dividend of Rs 6.5 a share.
TCS' operating margin stood at 25.1 per cent. Its operating income at Rs 7,347 crore, was up 8.9 per cent y-o-y. Tata Consultancy Services added 17,792 (gross) employees during the said quarter, taking its total headcount to 3.62 lakh as of June 30, 2016.
Meanwhile, a day ahead of its quarterly earnings announcement, shares of IT major Infosys were down by 1.5 per cent on Thursday. The stock ended at Rs 1,175.85, down 1.45 per cent on BSE. During the day, it was down by as much as 2.34 per cent to Rs 1,165.20.
On NSE, shares of the company slipped 1.47 per cent to settle at Rs 1,176.25. On the volume front, 2.44 lakh shares of the company were traded at BSE and over 37 lakh shares changed hands at NSE during the day.