India’s IT major TCS reported a flat growth in earnings, as net profit came in at Rs 6,531 crore against Rs 6,778 crore in the comparable quarter last fiscal, beating street estimates. Notably, revenue in rupee terms rose 4% percent sequentially to Rs 30,904 crore, from Rs 29,735 crore last fiscal. While the earning by itself is important, we bring to you five key takeaways from TCS’ Q3 earnings:
TCS CEO and MD Rajesh Gopinathan after the earnings announcement said that the company is hopeful tapping the European market by next year. He said that the company expects Europe to become its second largest market by next year. While TCS is eyeing Europe, its weakness in the December quarter is seasonal because of holidays.
Employee benefit expenses rose, weighing on profitability. The outsourcers are anticipating major challenges from visa restrictions the n movement of personnel to the United States.
Rajesh Gopinathan said that company made a 39% growth YoY in its digital revenue. Rajesh Gopinathan said that the company signed its first over $50 million deal in ‘Digital’ this quarter. New deal ramp-ups, increasing traction in Digital, robust demand pick up in Retail and continuing momentum in most of TCS’ industry verticals gave the company strong volume growth in a seasonally weak quarter, TCS COO and Executive Director N Ganapathy Subramaniam said.
Over 12,000 employees
TCS added 12,534 employees (gross) in the December 2017 quarter, taking its total headcount to 3,90,880 people.
Bullish on insurance
The company is optimistic an earlier turnaround in the insurance sector.
TCS, part of salt-to-software conglomerate Tata group, said revenue growth from all segments was above 9.5 percent, barring retail and the banking, financial services and insurance sector (BFSI), its largest. Indian IT firms have been facing sluggish growth in the BFSI sector as clients hold back on discretionary tech spends.