TCS posts robust quarterly, annual growth

Mumbai: Beating market estimates, Indian IT major Tata Consultancy Services (TCS) on Tuesday reported robust net profit and revenue growth for the fourth quarter of as well as fiscal 2016-17 in rupee and dollar terms with record operating margin and cash flow.

The global software major posted Rs 6,608 crore net profit for Q4, registering a 4.2 per cent growth over previous year and 2.2 per cent over previous quarter in rupee terms.

Revenue for the quarter also grew 4.2 per cent over last year to Rs 29,642 crore but the growth was over previous quarter was flat at 0.3 per cent.

Under the International Financial Reporting Standards (IFRS), net income for Q4 grew 5.8 per cent over last year to $992 million and gross revenue also 5.8 per cent to $4.45 billion.

For the fiscal, net profit grew 8.6 per cent over last year to Rs 26,269 crore and revenue also grew 8.6 per cent to Rs 117,966 crore in rupee terms.

"The growth was 8.3 per cent in constant currency (cc) with dollar rate at Rs.64.85 as on March 31 and volume growth 8.5 per cent for the fiscal under review," said the IT major in a statement.

Under IFRS, net income for FY 2017 grew 6.2 per cent over last year to $3.92 billion and gross revenue also grew 6.2 per cent to $17.58 billion.

Operating profit for Q4 grew 2.9 per cent over previous year and 1.4 per cent over previous quarter to Rs 7,627 crore, while operating margin was 25.7 percent and volume growth 1.7 per cent.

Operating profit for the fiscal grew 5.3 per cent over last year to Rs 30,324 crore, while operating margin was 5.3 per cent up.

Cash flow from operations at Rs 26,992 crore was up 15.4 per cent over last year, it said.