India's TCS profits fall by 6 percent

  • India's TCS profits fall by 6 percent

India's TCS profits fall by 6 percent

Earlier Yesterday, TCS CEO Rajesh Gopinathan said that the company had seen a steady performance in April-June despite challenging global environment.

Even on operational basis, Infosys' earnings before interest & tax-EBIT (-2.4 percent) and margin (24.1 percent) surpassed TCS' EBIT (-9.34 percent) and margin (23.4 percent).

TCS, the largest domestic IT firm, on Thursday reported a 10 per cent QoQ drop in net profit at Rs 5,945 crore for the June quarter, which fell short of with Rs 6,203 crore estimate projected analysts in an ETNow poll.

Housing finance major HDFC turns ex-dividend today, 14 July 2017, for final dividend of Rs 15 per share for the year ended March 2017. The company's clear focus on digital (roughly 19% of revenue and growing 26% annually) and new technologies is a validation that the industry is shifting toward services involving digital technologies and customer experience. "We have had excellent wins across markets and have a good deal pipeline across industries that positions us well for growth in FY18", he said.

"During the quarter high currency volatility including a sharp rupee appreciation against the dollar resulted in the Rs 650-crore loss in reported revenue". TCS has repurposed organization structures and go-to-market teams and also introduced two new service lines in Q1 -Cognitive Business Operations and Digital Transformation services.

As 82 per cent of the company's revenue comes from major markets like Americas, Britain, Europe and Australia, its annuity-based income is less volatile to currency fluctuation. Attrition rate of the company stood at 12.4% including BPS.

On the employee front, TCS' headcount came down by over 1,400 to 3.85 lakh over the past three months, but human resources head Ajoy Mukherjee asserted that there have not been any layoffs unlike at some of its peers such as Wipro, Tech Mahindra and others.

The percentage of women in TCS rose to an all-time high of 34.8 per cent while the number of nationalities increased to 134.

The company will be consolidating its Lucknow operations.