TCS Q4 net up 4.2% at Rs6,608 cr; revenues rise to Rs29,642 cr

Tata Consultancy Services Ltd, India's top software services exporter, reported a 4.2-per cent rise in consolidated quarterly net profit at Rs6,608 crore ($1.1 billion) for the period ended 31 March 2017.

TCS had reported a consolidated net profit of Rs6,340 crore for the comparable three-month period ended 31 March 2016.

TCS, which reported its first quarterly earnings under new chief executive officer and managing director Rajesh Gopinathan, said revenue for the January-March 2016-17 quarter rose 4.2 per cent year-on-year to Rs29,642 crore.

TCS said its consolidated net profit for the financial year ended 31 March 2017 increased by 8.6 per cent year-on-year and stood at Rs26,289 crore while revenue for the financial year also increased by 8.6 per cent to Rs1,17,966 crore.

Commenting on FY17, Gopinathan said, ''FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets. We added $1.4 billion in constant currency revenues during the year and increased our digital revenues sharply as we helped our customers leverage the digital economy. Our digital business grew at 29 per cent annually with most industries showing double digit growth as we steadily increased the number of customers across different revenue bands.''

''Our clients are looking for integrated offerings as they advance their Cloud agenda and we have a solid pipeline of deals across markets and industries. On the back of digital adoption, Agile, Automation and Cloud are the themes that we are going to market to drive efficiencies and predictable outcomes across our clients in infrastructure, applications and business operations.''

N Ganapathy Subramaniam, chief operating officer and executive director, said: ''Technology is driving different industries to rapidly evolve in new, uncharted ways. To stay relevant, enterprises have to go full on digital, stay agile and delight customers with a superior always-on experience. Our contextual knowledge of the customer's business combined with our Digital talent and our unparalleled execution on the ground positions us to play a strategic role to help them transform and grow.''

V Ramakrishnan, chief financial officer, said, "Despite headwinds from currencies, we have ended FY17 with an industry-leading financial performance while generating strong cash flows. We continue to invest to support organic growth of our digital business, build new market segments and drive profitability in our targeted range.''

TCS reported broad-based growth across markets with all industry verticals except BFSI, retail and hi-tech growing in double digits. Among major markets, Europe grew in double digits (13.6 per cent) and crossed $2 billion milestone in revenues followed by North America (7.6 per cent) and UK (6.1 percent). Among growth markets, MEA (14.8 percent) and Latin America (14.1 percent) led the way while India grew at 10.1 per cent and APAC at 5.7 per cent.

Among service lines, Enterprise Solutions and Consulting crossed the $3 billion and Business Process Services crossed the $2 billion revenue milestones, respectively.

Driven by IoT and Industrial Internet solutions, Engineering services led the way with 17.4 per cent growth during the year while infrastructure services grew at 16 per cent, followed by assurance services with 12.5 per cent growth and BPS with 10.4 per cent.

During the quarter, TCS was selected by a large global financial services company to provide end-to-end ADM services, while a a leading global travel commerce platform company selected TCS as its primary technology partner to innovate and shape a superior customer experience through the power of digital technologies.

A leading European life sciences company also selected TCS to design and transform IT solutions to institutionalise an agile, replicable divestiture capability.

Besides, TCS secured several clients in North America, Europe, India, APAC and other regions to provide services in various verticals such as banking, insurance, life sciences etc.