Tata Consultancy Services Ltd said on Monday its fiscal fourth quarter net profit fell 2.5% on-quarter to Rs 6,608 crore from Rs 6,778 crore in the previous quarter. The fall in the net profit was broadly in line with expectations, falling marginally behind ET Now’s consensus estimate of Rs 6,642 crore.
India’s largest information technology company’s Jan-Mar revenue fell 0.3% on-quarter to Rs 29,642 crore from Rs 29,735 in the preceding three-month period, it said in a statement. Revenue in dollar terms rose though, up 1.5% at $4.45 billion in the fourth quarter from $4.39 billion in the third quarter, it said.
“FY17 was a year of broad-based growth amid turbulence. We added $1.4 billion in constant currency revenues in FY17,” TCS CEO Rajesh Gopinathan said, referring to the company’s full fiscal year earnings.
However, the company disappointed on operating margin front, with the fourth quarter EBIT margin reported at 25.73% in the quarter ending March 31, falling from 26% in the quarter ending December 31. It lost about 40 basis points in margin due to currency fluctuations in the quarter. Tata Consultancy Services’ margin, however, is still among the best in the industry.
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Tata Consultancy Services’ EBIT (earning before interest and tax) for the quarter fell 1.4% on-quarter to Rs 7,627 crore from Rs 7,733 crore in preceding quarter. TCS also said its full fiscal year 2016-17 revenue in constant currency terms grew by 8.3%.
TCS, which said it continues to focus on digital, cloud and automation services, said it earned $3 billion in revenue from digital services in the full fiscal 2016-17, making up for 16.7% of its total earning for the year. The share of digital revenue in the fourth quarter was even higher at 17.9% of the total, it said.
Geography-wise, while the company’s revenue from North America fell 1.8% in the fourth quarter from the preceding three month period in constant currency terms, its UK revenue rose 4.1% by comparison, in the same period.
The company has recommended a final dividend of Rs 27 per share.