HOME > BUSINESS > TCS reports 1.2% sales growth QoQ, PAT up 1.3%

TCS reports 1.2% sales growth QoQ, PAT up 1.3%

TCS CEO, Tata Group Chairman & Maharashtra CM

Tata Consultancy Services reported a 1.3% improvement in revenue in constant currency terms, which is less than the 1.7% improvement reported in the previous quarter, but largely in line with expectations for a tame quarter. Revenue grew 6.2% on year in constant currency terms.

In rupee terms, the company’s revenue was at 30,904 crore; up 3.9% Y-o-Y and 1.2% Q-o-Q — also largely in line with expectations. Last quarter, revenue had risen at 3.2% (quarter on quarter).

In dollar terms, revenue was at $4,787 million; up 9.1% Y-o-Y and; 1.0% Q-o-Q. Last quarter,  revenue in dollar terms had risen 3.2%.

Volume growth was 1.6% quarter on quarter, indicating that there was pricing pressure given that the constant currency revenue growth was only 1.3%.

The company said volume growth was the strongest for this quarter in three years.

Q3 FY18 Net Profit was at Rs.6,531 crore; up 1.3% Q-o-Q, and largely in line with expectations.

EBIT improved to 8,645 cr from Rs 8,472 cr in the preceding quarter, but was down from 8,918 cr in the year-ago period.

In Oct-Dec, operating margin improved to 25.2%. Last quarter, TCS had reported an improvement in operating margin by 170 basis points sequentially to 25.1%.

SEGMENTS

Most industry verticals grew above company average in the quarter.

The Retail and consumer products vertical showed a strong turn around, growing 6.4% on quarter.

Growth was led by Energy & Utilities (+8.5%), Travel & Hospitality (+2.9%) and Life Sciences & Healthcare (+2.5%).

On a year on year basis, all industry verticals – with the exception of BFS and Retail – grew above 9.5%, with four verticals growing in double digits, it said. Segment growth numbers are in constant currency and not in real terms.

In terms of geography, growth was led by Latin America (+5% on quarter), Continental Europe (+2.6%) and North America (+1.5%).

On a Y-o-Y basis, Continental Europe (+22.3%), UK (+8.2%) and India (+4.1%) performed well.

North America grew 2.8% YoY.

The company added 1,600 to its headcount.

TCS is, by far, India’s largest private sector employer and has around 3.9 lakh employees, out of which over 3 lakh are in India.

The company has extensive campuses in Mumbai, Bangalore, Hyderabad, Chennai and Trivandrum.

It is part of the Tata Group, India’s largest business conglomerate, and is the most profitable of the Group’s firms.

TCS Limited was founded in 1968. Among its first contracts were to deliver punched card services to sister company TISCO, an Inter-Branch Reconciliation System for the Central Bank of India, and bureau services to Unit Trust of India.

The company is in the middle of a transformation, moving from business that focuses on tapping cheap technical labor in India to serve global clients to one that develops complicated software that can be used by companies to automate manufacturing and service jobs, such as customer service.

It is believed that companies like TCS will have to slim down to a fraction of their current headcount to survive in the new world of IT services.

Follow ULTRA.news
Infosys to bring down on-site employee numbers going forward IT services provider Infosys Ltd said it has largely exhausted the possibility of improving its profit margins by increasing employee utilization levels and will focus on bringing down on-site employee numbers to boost margins. The company reported an employee utilization leve...
Infosys reports in-line quarter, revenue up 5.8% YoY in constant currency Infosys reported a quarter that was largely in line with expectations and said it retains its full-year revenue growth guidance at 5.5-6.5%, excluding the impact of currency movements. With nine months gone, the company has grown at 5.6% in constant currency terms so far. F...
TCS takes over Transamerica’s insurance administration, 2,200 employees Transamerica is one of US' oldest insurance firms Tata Consultancy Services said it will take over the policy administration and customer service functions of US insurer Transamerica along with 2,200 of its employees in a $2 bln-plus, multi-year deal. The Indian company wi...
Hindustan Media Ventures reports 5% ad revenue growth Hindustan Media Ventures, the publisher of Hindustan daily, reported a 12% jump in net profit for the third quarter due to ongoing cost cutting measures. On a positive note, advertising revenue increased by Rs 8 cr, or 5%, on year during the third quarter to Rs 177 cr. Howeve...
Titan jewelry retail sales meet expectations, primary sales slow Titan's promotion for Taneira Titan Co, India's largest jewelry company, said its mainstay jewelry business saw retail sales that were in line with expectations for the October-December period, but there was a slight slowdown in sales to franchisees. It also said its pilot...
Zensar Tech CFO resigns with immediate effect Zensar Technologies, the IT services company from the RPG Group, said its chief financial officer Manoj Jaiswal resigned with immediate effect. "He will be relieved from his duties with effect from the closing of business hours on Dec 4," the company said. It was not clear...
Bangalore, ‘cultural fit’ swung it for Salil Parekh – Search Committee Head Two crucial factors that swung the decision in favor of hiring Capgemini veteran Salil Parekh as the new CEO of Infosys were his familiarity with working in the IT sector in Bangalore and his overall 'cultural fit' with the Indian IT industry, said Kiran Mazumdar-Shaw, who heads...
Boosted by Jio’s success, Mukesh Ambani unveils his future plans Mukesh Ambani, India's richest man, said telecom was the first of his big bet, and he will now use his resources to solve problems in three other difficult areas -- agriculture, education and healthcare. Speaking at the HT Leadership Summit, Ambani said his primary motivation...
Siemens Q2 sales hit by GST, profitability improves, orders up 10% Electrical goods maker Siemens Ltd reported an improvement in its profit margins, but underlying sales growth decelerated to 1.8% due to GST-related impact. The company usually posts 8%-15% growth in revenue. Net profit also showed a decline as last year, the company had exce...
TCS sets up new delivery center in Hyderabad for US-based Zebra Technologies Tata Consultancy Services, India's biggest foreign exchange generator, said it has set up a Global Development Center in Hyderabad to cater to Zebra Technologies, a billion-dollar US corporation that specializes in tracking technologies such as bar codes and RFID. The new cen...
NMDC Q2 sales up 39%, PBT up 19% India's largest iron ore producer NMDC has reported a 39% increase in its revenue for the September quarter compared to the same period last year. Net profit increased 10%. The increase in revenue and profit was mainly due to increase in pricing and volume, the company said. ...
Tata Global says lower costs helped Q2 profit growth Tata Global Beverages reported a 4.4% increase in revenue for the September quarter, while net profit jumped to 144 cr from Rs 127 cr in the year-ago quarter. Revenue declined marginally on a sequential basis, while net profit was higher by Rs 20 cr. The company said reven...
Zydus Cadila has an excellent quarter in Q2, PAT up 33% Pharma giant Zydus Cadila reported excellent numbers for the September quarter, led by rising US revenue that lifted its margins and profits. For the second quarter ended September 30, 2017, Zydus Cadila reported Earnings before Interest, Depreciation and Tax (EBIDTA) of Rs. 8...
Tata Chemicals PAT up 52% despite GST impact Tata Chemicals Limited reported flat revenue for the quarter ended September, partly due to the impact of the GST, but net profit from continuing operations was up 52%. On a like to like basis, said the company, revenue was up 2.6%. As reported, revenue was at 3,462 Cr and ...
Idea Cellular loss widens, ARPU down, VoLTE in early 2018 Idea Cellular reported a 19.7% year-on-year decline in its standalone revenue for the second quarter of this financial year, while net loss increased to Rs 1,176 cr from 617 cr in the preceding quarter and a net profit of 4.3 cr in the year-ago period. The revenue per subscri...
Sun TV continues slow ad growth trend, but subscription fees jump Chennai-based Sun TV continued to report decent overall growth in the July-September quarter as well, but advertising sales continued to lag behind peers such as Zee Entertainment. The company has been ‘suffering from’ poor advertisement growth in the last couple of years, ev...
Oracle Financial Services has yet another stellar quarter, sales up 12% Banking software maker Oracle Financial Services Software, formerly known as iflex, reported strong year-on-year numbers characterized by robust revenue growth and strict control over costs, however revenue slipped on a sequential basis. Consolidated revenue for the quarter w...
Amara Raja Batteries sees telecom impact on Q2 sales Amara Raja Batteries reported a modest improvement in its results for the September quarter, with operating profit edging above last year's level by a whisker. Growth would have been faster, if it hadn't been for the disruption in the telecom market, the company said. The ...
Jagran Prakashan profits hit by poor revenue growth, blames GST Jagran Prakashan reported disappointing results for the September quarter, continuing the trend of print and newspaper companies struggling in recent quarters. Total revenue from operations fell to Rs 566.55 cr for the three months ended September, down from 591.33 cr in the ...
TCS inaugurates mega campus in Thane, to eventually relocate most Mumbai employees Tata Consultancy Services said it inaugurated the first phase of Thane delivery center that will have the capacity to seat 30,000 employees when fully developed, which will make it the largest in Mumbai. The company, which has a huge operation in Vikhroli in the city, said it...