TCS reports 17.7% jump in net profit in Q4FY19

TCS reports 17.7% jump in net profit in Q4FY19

Tata Consultancy Services (TCS)

India's largest IT services company Tata Consultancy Services (TCS), on Friday, reported 17.7% rise in consolidated net profit at Rs 8,152 crore for the fourth quarter ended March 2019 compared to Rs 6,925 crore in the corresponding quarter last fiscal. The company's revenues during the quarter went up 18.50% to Rs 38,010 crore compared to Rs 32,075 crore in the year-ago quarter.

The board of directors of the company recommended a final dividend of Rs 18 per share for the year ended March 2019.

During the last financial year, TCS bought back 7,61,90,476 equity shares for an aggregate amount of Rs 16,000 crore being 1,99% of the total paid up equity share capital at Rs 2,100 per equity share. The equity shares bought back were extinguished on September 26. 2018, the company said in a regulatory filing.

For the full year ended March 2019, TCS has reported a revenue of Rs 1,46,463 crore, showing a growth of 19% year-on-year. The net profit for the full year stood at Rs 31,472 crore, a growth of 21.9% year-on-year.

Commenting on the Q4 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: "This is the strongest revenue growth that we have had in the last fifteen quarters. Our order book is bigger than in the prior three quarters, and the deal pipeline Is also robust. Despite macro uncertainties ahead, our strong exit positions us very well for the new fiscal."

Revenue growth continued to accelerate in BFSI, crossing over into double digits (+11.6% vs +8.6% in 03). Growth was broad-based, with most verticals showing strong growth: Life Sciences & Healthcare (+18.2%), Energy & Utilities (+11.3%), Communications & Media (+10%), Retail & CPG (+9.9%) and Manufacturing (+9.2%).

All major markets showed strong growth momentum. Growth was led by UK (+21.3%) and Europe (+17.5%). Other markets continued to grow well: North America (+9.9%), Asia Pacific (+11.5%), India (+11.3%) and Latin America +16.2%, the company said.

V Ramakrishnan, Chief Financial Officer, said: "Double-digit growth, higher quality of the incremental business, and best-in-class execution capabilities have helped us expand our operating margin year on year. Our foresight in investing very early on in building digital skills and transformational capabilities has not only gained our market share but has also resulted in our very resilient, industry-leading margin today."