TCS Q4 profit beats estimates; double-digit revenue growth in fiscal 2019

  • TCS' 2018-19 consolidated profit rose 22% to 31,472 crore
  • TCS has recommended a final dividend of 18 per share

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.

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