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TCS Q1 net profit up 10.8% at Rs 8,131 crore

Mumbai: The country’s largest software services firm Tata Consultancy Services (TCS) Tuesday reported 10.8 per cent growth in consolidated net profit to Rs 8,131 crore for the quarter ended June 30.

It had posted a net profit of Rs 7,340 crore in the year-ago period, the company said in a BSE filing.

Revenue of the Mumbai-based firm grew 11.4 per cent to Rs 38,172 crore in the June 2019 quarter, compared to Rs 34,261 crore in the same quarter of 2018-19, it added.

“We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter,” TCS CEO and Managing Director Rajesh Gopinathan said.

Digital revenue accounted for 32.2 per cent of the topline, growing 42.1 per cent in the said quarter over the previous year. The company had a net employee addition of 12,356 employees – its highest in five years, taking the total headcount to 4,36,641 people.

“…our margins this quarter fully reflect the annual increments that we effected across the board in April. Sustained rigour in operations helped deliver strong cash conversion and EPS expansion,” TCS chief financial officer V Ramakrishnan said.

The Earnings Per Share (EPS) was at Rs 21.67, up 13 per cent year-on-year.

The Board has recommended a dividend of Rs 5 per equity share for the June quarter.

Shares of TCS ended at Rs 2,131.45 apiece on the BSE, over 2 per cent lower from its previous close.

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