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Last Updated : Apr 12, 2019 06:19 PM IST | Source: Moneycontrol.com

TCS profit, revenue beat estimates; 8 key takeaways from Q4 results

The company reported a beat on net profit and revenues while it missed estimates in terms of EBIT as well as margins.

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Tata Consultancy Services (TCS) reported healthy net profit growth for March quarter on April 12 which was higher than analyst estimates. The company reported a beat on net profit and revenues while it missed estimates in terms of EBIT as well as margins.

TCS closed 0.26 percent lower at Rs 2,013 on Friday on the BSE.

Here is a list of top 8 takeaways from March quarter results:

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Net Profit:

India's top software exporter, Tata Consultancy Services, reported a consolidated net profit of Rs 8,126 crore which was higher than CNBC-TV18 estimate of Rs 7,990 crore. The profit grew 17.7 percent on a year-on-year basis while sequentially, net profit rose by 0.26 percent.

Revenues:

Revenue in rupee terms stood at Rs 38,010 crore for the quarter ended March which was higher than CNBC-TV18 poll of Rs 37,778 crore. The net profit grew by 18.5 percent on a YoY basis, and 1.8 percent sequentially.

Dividend:

The Directors at the board meeting have recommended a Final Dividend of Rs 18 per share.

Dollar Revenue:

FY19 US Dollar Revenue crosses $20 billio mark. Dollar revenues grew 12.7 percent on a YoY basis and 2.4 percent sequentially in constant currency terms.

Rajesh Goplnathan, Chief Executive OffIcer and Managing Director, said: "This is the strongest revenue growth that we have had in the last fifteen quarters. Our order book is bigger than in the prior three quarters, and the deal pipeline is also robust. Despite macro uncertainties ahead, our strong exit positions us very well for the new fiscal."

Operating Performance:

The company's EBIT was at Rs 9,537 crore while margins declined 25.1 percent. Analysts polled by CNBC-TV18 had forecast EBIT margins at 25.4 percent largely on account of rupee appreciation. For FY19, operating margin stood at 25.6 percent, up 79 bps on a YoY basis.

Segment Revenue:

Revenue growth continued to accelerate in BFSI. The growth rate crossed over into double digits to 11.6 percent in Q4 compared to 8.6 percent recorded in the previous quarter. Digital revenue which is approximately 31 percent of total revenue, rose surged 46.4 percent on a YoY basis.

Growth was broad-based, with most verticals showing strong growth: Life Sciences & Healthcare (+18.2%), Energy & Utilities (+11.3%), Communications & Media (+10%), Retail & CPG (+9.9%) and Manufacturing (+9.2%).

Regional markets:

All major markets showed strong growth momentum. Growth was led by the UK (+21.3%) and Europe (+17.5%). Other markets continued to grow well: North America (+9.9%), Asia Pacific (+11.5%), India (+11.3%) and Latin America (+16.2%).

Human resources:

TCS saw a robust net addition of 29,287 employees during the year which took the total employee strength at the end of FY19 to 424,285 on a consolidated basis.

The proportion of women in the workforce rose further to 35.9 percent in Q4, and the total number of nationalities represented stood at 147.

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First Published on Apr 12, 2019 06:19 pm
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