TCS' first quarter consolidated net profit rises 9%
Tata Consultancy service(TCS) reported consolidated net profit of Rs. 6,318 crore for the June quarter ended (Q1FY17), registering marginal decline of 0.45% quarter-on-quarter (qoq). However, the company reported 9.44% growth in the corresponding quarter of the previous year.
The consolidated total income stood at Rs. 29,305 crore, witnessing 3% qoq and 14.16% year-on-year (yoy) growth.
It's operating profit (EBITDA - earning before interest tax depreciation and amortisation) for the quarter stood at Rs. 7,837, down by 0.88% qoq but up by 8.83% yoy. The operating profit margin (OPM) stood at 26.74%, contracting by 105 bps (basis point) qoq and 131 bps yoy.
On Standalone basis, the IT-service provider recorded net profit of Rs. 5,778 crore, increasing by 0.92% qoq and 2.57% yoy. It's total income was around Rs. 23,087 crore, recording growth of 3.72% qoq and 13.45% yoy.
While operating profit stood at Rs. 6,807 crore, up by 1.64% qoq and 4.83% yoy. The standalone operating profit margin was 29.48%, contracting by 60 bps and 242 bps yoy.
Commenting on the Q1 performance, CEO and MD, N Chandrasekaran said, “Strong execution and accelerating customer adoption of Cloud, Big Data & Analytics has driven broad-based growth across key markets and industries. Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge.”
Chandrasekaran added, Our employee retention rates for three consecutive quarters reflects our focus on engagement and investments we have made to build strong digital talent base. This is paying off with over 165,000 TCSers now trained with significant expertise in new Digital technologies that are rooted in specific domains.
In this quarter, the company registered total employees of around 362,079 with gross addition of 17,792 employees. A total of 10 clients added in more than $ 70 million in TCS.
Share price of TCS rose 1.16% on BSE and NSE, at Rs 2520.30 and rs 2521.90, respectively.