MUMBAI : Tata Consultancy Services Ltd (TCS), India’s largest IT services company by revenue, ended fiscal 2019 with double digit revenue growth as the company reported a 11.4% growth in constant currency terms in the fiscal ending 31 March, the company said in a statement. For the March quarter, TCS reported a revenue growth of 2.4% from the preceding three months in constant currency terms. Revenue grew 12.7% from the same period a year ago. This is TCS' fifth straight quarter of year-on-year double-digit revenue growth in constant currency terms. For the March quarter, the company reported a revenue of ₹38,010 crore and a profit of ₹8,126 crore, beating street estimates. A Bloomberg survey of 29 analysts had estimated revenue of ₹37,829.1 crore and a profit of ₹7,970.7 crore. "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," said Rajesh Gopinathan, chief executive officer and managing director of TCS. In terms of markets, growth was led by UK, which saw revenue increase by 21.3%, followed by Europe, where revenue increased 17.5%. North America grew at 9.9%. From a segment perspective banking and financial services segment grew in double digits at 11.6%. “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 us market share, but has also resulted in our very resilient, industry-leading margin today," said V Ramakrishnan, chief financial officer at TCS. Shares of TCS closed on Friday at Rs2,013.75 apiece, down 0.26% on the BSE. The announcement was made after market hours. Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter. Never miss a story! Stay connected and informed with Mint. Download our App Now! ! Topics<doc-sep>TCS Results: The country's largest software services firm Tata Consultancy Services (TCS) on Friday reported a 17.7 per cent YoY growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter. Here are the HIGHLIGHTS:- - TCS reported a 17.7 per cent YoY growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter. - This is against a net profit of Rs 6,904 crore in the year-ago period, TCS said in a regulatory filing. -Revenue of the software giant grew 18.5 per cent in the quarter under review to Rs 38,010 crore from Rs 32,075 crore in the corresponding period last fiscal, it added. - For the full year (2018-19), net profit was higher by 21.9 per cent at Rs 31,472 crore, while revenue increased 19 per cent to Rs 1,46,463 crore. - "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," Rajesh Gopinathan, chief executive officer and managing director at TCS, said. -TCS Board has recommended a final dividend of Rs 18 per equity share. Earlier, in the day, shares of TCS closed flat ahead of the announcement of its March quarter earnings later in the day. The scrip declined 0.26 per cent to close at Rs 2,013.75 on the BSE. During the day, it fell by 0.54 per cent to Rs 2,008.05. On the NSE, shares of the company closed 0.31 per cent lower at Rs 2,013.05. In terms of volume, 1.65 lakh shares were traded on the BSE during the day, while over 31 lakh shares changed hands on the NSE.<doc-sep>TCS bets on Business 4.0 to push digital revenue to over billion this year TCS bets on Business 4.0 to push digital revenue to over billion this year Tata Consultancy Services (TCS), India’s largest software services firm, on Friday reported a 17.7 per cent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter as against a net profit of Rs 6,904 crore in the year-ago period. The company, which is also the second most valued listed company, reported an 18.5 per cent rise in revenue for the quarter under review to Rs 38,010 crore from Rs 32,075 crore in the corresponding period last fiscal. For the full year (2018-19), net profit was higher by 21.9 per cent at Rs 31,472 crore, while revenue increased 19 per cent to Rs 1,46,463 crore. In dollar terms, revenue crossed $ 20 billion mark to $ 20.9 billion for the fiscal 2019. Rajesh Gopinathan, Chief Executive Officer and MD, said: “this is the strongest revenue growth that we have had in the last 15 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.” “Our full spectrum digital transformation capabilities and thought leadership is what is driving the strong demand for our services, and making us the preferred innovation and transformation partner to our customers. Our Business 4.0 framework has now become the de facto model for enterprises looking to embrace new technology-enabled business models, pursue new revenue streams or deliver superior customer experiences,” Gopinathan said. Revenue growth continued to accelerate in BFSI, crossing over into double digits (11.6 per cent as against 8.6 per cent growth in Q3). Growth was broad-based with most verticals showing strong growth: Life sciences and healthcare (18.2 per cent growth), energy & utilities (11.3 per cent growth), communications & media (10 per cent growth), retail & CPG (9.9 per cent growth) and manufacturing (9.2 per cent). N Ganapathy Subramaniam, COO & Executive Director, said: “it is a very satisfying finish to a year marked by steady growth acceleration and order book expansion every quarter…”<doc-sep>Even as the IT industry has started to move past the hurdles bogging them down for the past two years, a new challenge has emerged: rise in costs due to localisation. Indian IT firms face stiff competition at offshore sites from captive centres—that are operated and owned by clients themselves—as they cost less. That adds to their sub-account expenses and eventually weighs on the margin. “Even as IT companies have stepped up local hiring, the fact is that talent is not easily available at the mid-level. This will lead to increase in cost structure in the U.S.,” Kotak Institutional Equities said in a prior report. “The increase in cost structure was already visible in December 2018 quarter where subcontracting costs increased for Infosys Ltd. and TCS,” according to the report. “Some amount of rupee depreciation is necessary to offset the cost increase.” The rupee has started strengthening against the U.S. dollar and that means the margin benefit IT companies had been getting last year would no longer be available. “The rupee, what was a tailwind, has now turned into a headwind,” said Sanjiv Bhasin, executive vice president at IIFL Securities. “If anything I would expect margins to be slightly weaker going forward rather than on the upside.” Despite the dip, Gopinathan said that TCS’ margin is close to where they would like it to be. “We are comfortable with margins at this level; it’s close to our aspiration levels. Forty basis points here or there does not move the needle. From a strategy point of view, we are focussed on many other dimensions,” he said in the media conference. Margins and the global slowdown should not concern investors right now, according to Trip Chowdhry, managing director of Global Equities Research. “I don’t think margins should be the focus. When you’re winning new customers for new services with a completely new set of value propositions, you have to go for a land grab. You win these large deals first and then eventually the margin will improve,” he told BloombergQuint.<doc-sep>
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."