TCS miss Q1 estimates, net profit falls 5.9% to Rs 5,945 crore | business news | Hindustan Times
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TCS miss Q1 estimates, net profit falls 5.9% to Rs 5,945 crore

Consolidated net profit dropped to 59.50 billion rupees in the three months to June 30, from 63.18 billion rupees, a year earlier, TCS said on Thursday.

business Updated: Jul 13, 2017 19:06 IST
PTI
Tata Consultancy Services (TCS) Chief Executive Officer Rajesh Gopinathan speaks during a news conference announcing the company's quarterly results in Mumbai.
Tata Consultancy Services (TCS) Chief Executive Officer Rajesh Gopinathan speaks during a news conference announcing the company's quarterly results in Mumbai.(Reuters Photo)

India’s largest software services firm Tata Consultancy Services (TCS) on Thursday reported a 5.9% decline in its consolidated net profit to Rs 5,945 crore for the April-June quarter, hit by currency volatility.

It had posted a net profit of Rs 6,317 crore in the corresponding three-month period of the 2016-17 fiscal, the Mumbai-based firm said in a BSE filing.

The company, however, posted a marginal increase of 1% in its consolidated revenue at Rs 29,584 crore during the quarter as against Rs 29,305 crore in the year-ago period.

When compared to the January-March 2017 quarter, its net profit during the period under review fell 10%, while revenue slipped 0.2%.

TCS chief financial officer V Ramakrishnan said during the quarter, high currency volatility, including sharp rupee appreciation against the dollar, resulted in Rs 650 crore loss in reported revenues.

“We remain disciplined in our financial management, stay focused on generating strong cash flows and invest in our digital business,” he said.

Despite the impact of wage hikes in the first quarter, TCS continues to drive profitability to its targeted range, Ramakrishnan added.

TCS CEO and MD Rajesh Gopinathan said the company has seen steady growth across industries in the first quarter of the fiscal.

“We have had excellent wins across all markets and have a good deal pipeline across industries that positions us well for growth in FY18,” he added.

The company has announced interim dividend of Rs 7 per share.

Tata Consultancy Services added 11,202 (gross) employees during the quarter under review, taking its total headcount to over 3.85 lakh.